Gas company profits tax. This is how Russia will reduce the budget deficit

The sanctions have consequences for the Russian budget. So much that Vladimir Putin plans to raise the tax rate on profits for energy companies that sell gas. Over the next three years (until 2025), they must pay 32 percent tribute. 15 percent goes to the central budget, and 17 percent. – to regional budgets – reports “Kommersant”, citing his sources at the Ministry of Finance.

It is estimated that at the current exchange rate of the ruble and the price of gas in world markets, the new tax could bring in up to 200 billion rubles per year.

The Kremlin will hit its own gas projects

The magazine states that The load thus constructed will mainly be Novatek and Gazprom. meet. It will also shake up the projects that both companies are working on, namely Yamal LNG, Cryogas-Vystosk and Sakhalin-2 from Novatek, as well as Porotwaja LNG, which Gazprom is working on, respectively.

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The problem is that Russia creates these projects in collaboration with foreign entities. Yamal LNG is partially owned by Chinese entities (20% is owned by CNPC and 9.9% by the Silk Road Fund). In the case of Sakhalin-2, the Russian concern signed a production-sharing agreement with Mitsui and Mitsubishi.

If Russia decides to introduce a new tax, it will: this complicates the tax situation of the above investments. It will also require Russian entities to renegotiate their contracts.

Novatek, Gazprom and the Treasury Department did not comment on the reporters’ findings.

Russia will lead to China’s discontent?

However, Sergei Kondratiev, deputy head of the economic department of the Institute of Energy and Finance, emphasized in an interview with “Kommersant” that although the Russian-Chinese agreements offer “favorable conditions”, they did not mention preferential tax on profits. This means that formally, the Kremlin may decide to increase its stake. However, that would cause discontent in Beijing.

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