Bloomberg News

Novatek Falls as Finance Minister Signals Possible Tax Rise

May 30, 2012

OAO Novatek, Russia’s second-biggest natural gas producer, sank to the weakest level in a year and a half as the Finance Minister indicated Russia may raise taxes on oil and gas producers.

The shares retreated 3.1 percent to 288.91 rubles by the close in Moscow, the lowest since December 2010. The benchmark Micex Index dropped 1.4 percent to 1,308.30.

“Uncertainty just isn’t helpful, especially when the whole market has been sold off so aggressively,” Julian Rimmer, trader at CF Global Trading UK Ltd. in London, said by e-mail.

The Finance Ministry plans to recapture about 80 percent of the extra revenue natural-gas producers earn as the state increases regulated domestic prices, including by canceling some tax breaks, Anton Siluanov said today in Moscow.

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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