Bloomberg News

Novatek Drops to 7-Month Low on Mineral Extraction Tax Plan

May 02, 2012

OAO Novatek, Russia’s second-largest natural-gas producer, slumped to its lowest in seven months after a finance ministry official said the government approved quadrupling the mineral-extraction tax.

Novatek sank 10 percent to 340.85 rubles by the close in Moscow, the lowest since Oct. 4 and the biggest drop on the benchmark 30-stock Micex Index today. The company’s London- traded shares lost 9.1 percent to $113.

Independent gas producers, which include Novatek and oil companies, will pay 1,049 rubles per 1,000 cubic meters of gas produced in 2015, compared with 251 rubles this year, Deputy Finance Minister Sergei Shatalov told reporters in Moscow today after a government meeting.

OAO Gazprom, Russia’s gas export monopoly, erased gains of as much as 1.6 percent to close down 1.1 percent at 167.34 rubles. Gazprom will be taxed at 1,062 rubles per 1,000 cubic meters of gas produced in 2015, Shatalov said. That compares with a rate of 509 rubles this year.

To contact the reporter on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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