Rosneft President Igor Sechin and Head of the Federal Tax Service of Russia Mikhail Mishustin signed an agreement between the Federal Tax Service of Russia, Rosneft and its five subsidiaries on pricing for tax purposes.

The purpose of the Agreement is to align the position of the taxpayer and the Federal Tax Service in the definition and application of the pricing methods regarding specific deals between related parties and minimize the risks of possible disagreements between the parties on the matters related to establishment of prices for tax purposes.

In 2012, Rosneft was the first company in the country to enter into an agreement on pricing with the Federal Tax Service of Russia and to disclose its approaches to pricing for the comprehensive taxation purposes. In 2013, the Company keeps pursuing the transparency policy with respect to major deals with its interdependent entities.

Entering into yet another agreement on pricing for tax purposes confirms the high transparency of Rosneft for tax authorities, transparency of its transactions and the willingness of the parties to engage in a constructive and professional dialogue.

Notes for editors:

Agreements on Pricing are a tool in the national tax practice introduced by Federal Law ¹ 227-FZ dated 18.07.2011. Entering into an agreement can significantly simplify the tax administering procedures for major taxpayers and cut costs of taxpayers associated with the tax control. The agreement is aimed at a fair distribution of the tax base between the budgets of the regions of the Russian Federation.

Agreements on Pricing for tax purposes allow taxpayers and tax authorities to determine the market value of transactions in advance – before the actual execution of transactions – to calculate the respective tax liabilities.