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Lawmakers set tax rate at nil for ammonia, hydrogen projects

The bill sets the tax rate at zero for MET when producing natural gas and gas condensate used solely to make ammonia and hydrogen at subsoil areas located in Yamal and Gydan

MOSCOW, June 1. /TASS/. The State Duma, the lower house of the Russian legislative assembly, approved in the first reading a bill which sets a zero mineral extraction tax (MET) rate for greenfield gas projects required to produce ammonia and hydrogen in Yamal, in the Russian Arctic.

The document was proposed by the Russian government. The draft federal law provides an opportunity for constituencies to set a lower corporate income tax rate for businesses making ammonia or hydrogen from gas or gas condensate at new production facilities.

The bill also sets the tax rate at zero for MET when producing natural gas and gas condensate used solely to make ammonia and hydrogen at subsoil areas located in Yamal and Gydan, located in the Yamal-Nenets Autonomous District.

The new projects refer to those commissioned from 2025 onwards.

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