The relative stagnation in Russian oil production over the past few years has long been a concern for policymakers. However, it seems unlikely that the new, more favourable, tax regime for Russian oil companies will, as some have argued, lead to a marked increase in investment – and thus output – within Russia’s crucial energy sector. We think, further reforms to the business climate, as opposed to small changes to the tax regime, will be required to make Russia an attractive destination for foreign investors.