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Finance Ministry denies reports on possible tax benefits for Gazprom's foreign partners

Earlier, a newspaper reported that the government may reduce the mineral extraction tax for joint mining projects of Gazprom and foreign investors

MOSCOW, October 26. /TASS/. Russia’s Finance Ministry will not make any exceptions with regard to taxation to Gazprom's projects with the participation of foreign investors, an official with the ministry told TASS.

"The reduction of taxation to the level of independent [gas producers -TASS] is not discussed, since these companies, subsidiaries of Gazprom, have the right to export gas," the official said.

"No exceptions for foreigners are expected, we have the principle of equality in taxation," the official added.

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Gazprom's partners in Nord Stream-2 may revise financing mechanism

He also said that only reduction of the mineral extraction tax in terms of the extra charge for Gazprom, which is effective from this year, is being discussed.

Earlier, the Kommersant business daily reported referring to sources, that the government may reduce the mineral extraction tax for joint mining projects of Gazprom and foreign investors.

According to the publication, Prime Minister Dmitry Medvedev signed an appropriate instruction to the ministries of Finance, Energy and Economic Development. First of all, it concerns Gazprom’s joint venture with the German Wintershall and the Austrian OMV. However, the mechanism and the size of the benefits were not specified.

Wintershall is running two projects in Russia - the development of the first block of the Achimov deposits in the Urengoy field (Gazprom and Wintershall hold 50% each), and the development of the Yuzhno-Russkoye field (Wintershall -35%, Austria's OMV -25% and the rest is held by Gazprom).

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Oil & Gas Gazprom

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