Russian ministry mulls testing new tax on nine deposits

May 15, 2014

The Russian Energy Ministry is going to choose nine oil and gas deposits for a pilot project to test a new variable profits-based tax (NDD), Energy Minister Aleksandr Novak has said. The newspaper Kommersant has listed Gazprom Neft’s Vyngayakhinskoye and Yatypurovskoye deposits, Lukoil’s Pokamasovskoye, Imilorskoye, Filippovskoye, Las-Eganskoye, Druzhnoye and Vozeyskoye deposits and Sugrutneftegas’s Shpilman deposit among those under consideration.

Novak said the project to introduce NDD had been already developed and could be approved by the end of 2014. The Finance Ministry is against NDD, which may become an alternative to mineral production tax (NDPI).

Copyright: Oil and Gas Information Agency, 2014