Abandonment fund: Financing schemes, default security mechanisms and decommissioning of oil and gas wells

Currently, no standard and regulation govern the establishment of abandonment fund and oil and gas well decommissioning in Russia. That leads to uncertainty in taxation and correct accounting for these expenses in the financial statements becomes an issue to be addressed. Aim of the article – evaluation of the financing schemes and default security mechanisms within the framework of the establishment of abandonment fund, as well as the synthesis and identification of key issues in oil and gas well decommissioning.