Transneft service rates set legally, approach not being changed - regulator

MOSCOW. Nov 27 (Interfax) - Rates for the services of Russian oil pipeline monopoly Transneft are set in line with Russian law and the current approach is not being changed, the Federal Antimonopoly Service (FAS) said.

"The current system for setting rates for PJSC Transneft's services is implemented in accordance with existing legislation. Work is not underway to change the current approaches," the regulator said in a press release.

Transneft warned earlier that it could face a cash crunch by 2026 and suspend the implementation of major investment projects due to a looming increase in its tax burden. As a support measure, Transneft proposed to change the indexation of rates for its services, which lags behind inflation.

The State Duma passed amendments to the Tax Code Tuesday that call for hiking the profit tax for Transneft to 40% for six years, until 2030.

Under a government decree, annual increases in Transneft's rates for the ten years from 2021 to 2030 are based on the principle of "inflation minus 0.1%." In line with this, the FAS has drafted an order to raise Transneft's rates by 5.8% in 2025.