Over 800 Russian Oil Fields To Be Entitled To Tax Breaks

October 2, 2013

More than 800 Russian oil fields are entitled to tax breaks, Russian deputy natural resources minister Denis Khramov told the 12th international investment forum in Sochi. His report was entitled “On the fiscal aspects of raw materials production”.
Speaking about investment in geological prospecting, Khramov said the main stimulus in this area is the prospect of effective development of fields. “If a tax regime makes the extractive industry profitable in a given region, it makes sense to conduct geological prospecting there,” he said.
Currently companies working in the Arctic basin, the Azov, Caspian, Black and Okhotsk seas as well as in the East Siberia and the Nenetsky and Yamal-Nenetsky autonomous areas enjoy tax breaks.
Deductions are made from taxes also in the fields in Tatarstan and Bashkortostan and in the fields where extractable resources are below 5mn tons and where drilling is complicated or the fields are exhausted.
Copyright: Vslukh, 2013.