Russian MinFin canceling gas tax surcharge for Gazprom due to investment needs

MOSCOW. Oct 1 (Interfax) - The money saved by canceling the mineral extraction tax or MET surcharge from January 1, 2025 will be used to finance Gazprom's investment program, the Russian Finance Ministry's press service said.

"The MET adjustment for Gazprom's gas has already been written into the draft budget submitted to the State Duma. There is a proposal to cancel the summand in the MET formula for next year. This will ensure financing for Gazprom's investment program," the ministry said.

The Finance Ministry is budgeting for 600 billion rubles less mineral extraction tax for gas in 2025 and 2026. The ministry said in an explanatory note to the 2025-2027 budget that gas tax in the budget will be 550 billion rubles less in 2025 and 50 billion rubles less in 2026. This corresponds to the monthly MET increase of 50 billion rubles for gas in effect from January 1, 2023 until the end of 2025.

MET for Gazprom was increased by 50 billion rubles per month from January 1, 2023. The plan was for the surcharge to be in effect until December 31, 2025. The State Duma passed the relevant law (No. 201629-8) in November 2022.