Russian Resources Ministry drafting amendments to payments for subsoil auctions

MOSCOW. July 16 (Interfax) - The Russian Natural Resources Ministry is working on amendments to the calculation of payments when issuing subsoil plots for both solid minerals and hydrocarbons.

The ministry said two documents have been drafted for public discussion. One would alter the method for calculating the minimum (starting) one-time payment for subsoil use at auctions. The second amends the rules for determining one-time payments for subsoil use for subsoil plots allocated without auctions.

"Changes to both regulatory documents are proposed. It is too soon to disclose their details - they will be unveiled once internal ministry approval is completed. This concerns changing the approaches to calculating payments for certain types of minerals, for which data for recent years show high interest from investors," the ministry said.

It also said that when calculating one-time payments, the plan was to take into account previously adopted amendments to tax legislation for determining mineral extraction tax for several types of minerals.

Deputy Prime Minister Dmitry Patrushev has said payments for subsoil licenses must be commensurate with the value of the corresponding deposits.