Bloomberg News

Medvedev May Lower Novatek Gas Extraction Taxes, Vedomosti Says

June 13, 2012

Russian Prime Minister Dmitry Medvedev may revise a planned increase in natural-gas extraction taxes for so-called independent producers of the fuel -- OAO Novatek and oil companies, Vedomosti said, citing an unidentified state official.

The government will consider possible changes at a meeting today and is favoring a formula to calculate the tax based on domestic prices, OAO Gazprom’s export prices, inflation and the type of gas deposit, Vedomosti said.

The government may propose raising the tax for independent gas producers to the same level as for Gazprom, the gas pipeline operator and exporter, as discussed in May, only if Gazprom loses its monopoly right to ship the fuel abroad or if regulated domestic gas prices are increased to become as profitable as exports, Vedomosti reported.

The government is reviewing a planned jump in the extraction tax, Deputy Prime Minister Arkady Dvorkovich said May 31. The government planned to raise independent producers’ tax rate to about the same level as Gazprom’s in 2015, Deputy Finance Minister Sergei Shatalov said on May 2.

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


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