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Putin tasks government with developing issue of viscous oil encouragement

The government is to report to the president on that issue by May 1

MOSCOW, April 12. /TASS/. Russian President Vladimir Putin has tasked the government with developing the issue of encouragement of production of viscous oil and development of other tight reserves as part of the revenue-added tax parameters in the oil sector by May 1, following the meeting on policies encouraging investment activity, according to the statement released on the Kremlin’s website on Monday. Last week Putin discussed the issue of encouraging the sector with Chief Executive Officer of Lukoil Vagit Alekperov.

"Taking into account the earlier made instructions, to consider with the participation of oil companies the issue of taking additional steps aimed at supporting projects connected with production of highly viscous and super viscous oil, development of tight oil reserves, crude production at highly watered wells," the document said. Production may be encouraged, particularly, through "provision of the right to use the tax on excess profit from hydrocarbons production to organizations implementing such projects," according to the document.

The government is to report to the president on that issue by May 1, 2021.

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