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Tax preferences for foreign investors in gas sector planned in Russia

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MOSCOW, May 30. /ITAR-TASS/. Russian government has decided to introduce fixed-term tax preferences for foreign investors in the priority gas production and transportation projects.

Tax policy up to 2017 will be completed during the week by early June.

Part of this priority plan is the Eastern Gas Program developed by Gazprom and the Ministry of the Development of Russian Far East. The program is intended to provide a market-adequate production in the Far East, with an emphasis on the Russian customers, innovation in exploration, production and processing of gas, including associated gas.

Such projects will require gas production centers in the Republic of Yakutia, Sakhalin Region and Kamchatka Territory as well as a unified gas transportation system and the parallel development of gas processing and gas chemical production, including helium and liquefied natural gas (LNG) facilities.

According to the basic Russian Energy Strategy up to 2035, natural gas export is expected to grow 1.4 times to 301 billion cubic meters. In 2012, Russia exported 215 billion cubic meters.

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Oil & Gas Taxation

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