In his column in the Neft Rossii magazine, Anton Oussov, Partner and Head of KPMG’s Oil & Gas Practice in Russia and the CIS, explains that having an efficient organisational structure can help oil & gas companies reduce costs, motivate employees, and gain a competitive edge. He also analyses centralised and decentralised types of organisational structure.
Given ongoing discussions surrounding the deoffshorisation law in Russia and expanding the Russian tax residence concept by introducing the governing body to define a company’s tax burden, selecting the correct organisational structure is a hot topic for many companies.
“Obviously, it is extremely difficult to establish an ideal organisational structure that minimises risks, optimises taxation and at the same time improves operational management. However, if we look at international practice, we will find some time-proven approaches. The indisputable criteria for an efficient organisational structure is ease of management together with cost optimisation and business process standardisation,” states Anton.