icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Mineral extraction tax may increase in Russia

Mineral extraction tax may increase in Russia
Russia, the world's richest country in natural gas reserves, may soon have to import gas. The government is considering increasing the mineral extraction tax, which would make gas production more costly.

As demand for gas is growing while production is increasing at a slower pace, Russia may find it cheaper to import gas from Turkmenistan.

Analysts are convinced there will be a hike – maybe even an increase of tax 5 or 6 times. However, they say it would make more sense to leave the tax as it is for now.

Nadia Kazakova, Senior aAalyst, MDM Bank, believes that the decision to increase the mineral extraction tax can be taken not earlier than 5-7 years later. It will allow Gazprom and independent companies to produce enough to satisfy domestic needs and to export additional gas, gaining profits for expansion.

“Five or seven years down the road  – they will be able to produce more gas and then government can tax some of the additional profits away. So, I can’t see why the government will like to kill the ‘golden goose’ right now. They can do it 5 to 7 years later,” says Nadia Kazakova.

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.

Podcasts