Friday, Dec 13 2019
All Cities
Choose Your City
'What happens in Sibera stays in Siberia...unless it is covered by The Siberian Times'

Major 25 year tax break on new gas projects in Siberia and Russian Far East

By The Siberian Times reporter
20 November 2012

Minister of Energy Alexander Novak is proposing to slash the mineral extraction tax on new developments for quarter of a century.

'We hope that these tax initiatives... will attract investments to the development of new fields and those in operation', Russia's Ministry of Energy Novak said. Picture: gazprom.ru 

'We propose eliminating the MET for 25 years for new projects in Siberian and Far Eastern fields, and we hope that these tax initiatives will give an additional stimulus for attracting investments to the development of new fields and those in operation,' he said. 

'Such proposals were submitted to the government on November 1. Now we are finalising them with the Finance Ministry.'

There remain 'some discrepancies' but he insisted:  'This is economically viable and justified. All new projects have no necessary infrastructure and need investments'.

The plan is to stimulate the development of new fields in which, he acknowledged, the costs are far higher than existing projects in Western Siberia. 

The Minister was speaking on the sidelines of the Gas of Russia forum in Moscow. Top officials previously indicated they were examining such a proposal and it forms part of a package aimed at significantly stimulating the economy of Siberia and the Far East. 

It was not immediately clear when a final decision will be made. 

Add your comment

We welcome a healthy debate, but do not accept offensive or abusive comments. Please also read 'Siberian Times' Privacy Policy

Name

Town/Country

Add your comments

The views expressed in the comments above are those of our readers. 'Siberian Times' reserves the right to pre-moderate some comments.

Control code*

Type the code

* obligatory


News

Business

The Bank of Russia official exchange rates of foreign currencies
EUR70.43USD63.23GBP83.50Other...