26.10.2025
Fiscal cautionary tale about Transneft
In October 2025, Russia’s Transneft complained that it was forced to revise its investment program. The company cites the main reason for this as the increased individual income tax: instead of 25%, it pays a whopping 40% in income tax.
Transneft has completely abandoned new projects and supports only existing ones. I wonder where they will get investments if Ukrainian UAVs “fall debris” on 2-3 of their oil pipelines?
But even without UAVs, a study of the situation with Transneft shows that the Putin regime is sucking almost all the resources from the oil infrastructure sector for the war in Ukraine. The sector is stalling its development, and today the Kremlin is not much concerned about this, since the volume of oil and oil products pumped is decreasing. However, in a couple of years, the problem of Transneft’s weak network will make itself felt by slowing down the development of the fuel industry.
The only bad thing about this story with Transnafta is that the company’s management, while publicly expressing dissatisfaction with the fiscal policy of the Russian authorities, is embarrassed to say outright that this whole mess is due to the war in Ukraine.
Perhaps the reason for the shyness of Transneft management is that on July 4, 2025, their vice president Badalov fell out of a 10th floor window.
It’s a fact that the runt is sucking out every drop of life he can get from the mafia state to carry on this war, from the largest conglomerate to the lowest serf. The damage to mafia land is already significant. It’s anyone’s guess how much longer this can go on, and how many more window drops will happen. Ukraine is doing its best to accelerate the death of putinism and the scourge of this planet.