Russia will grant tax breaks to offshore deposits to ensure they generate at least a 16 percent return, according to Energy Minister Sergei Shmatko.

The risks of offshore projects are higher than for East Siberian fields and should be assured of a higher level of profitability, Shmatko told reporters today in Moscow after meeting with Prime Minister Vladimir Putin.

The government will definitely consider tax breaks for OAO Gazprom’s Shtokman project in the Barents Sea, Shmatko said.

To contact the reporter on this story: Anton Doroshev in Moscow at adoroshev@bloomberg.net

To contact the editor responsible for this story: Torrey Clark at tclark8@bloomberg.net