Ministries to prepare amendments to Russian Tax Code on raising cut-off threshold for fuel damper payments - sources

MOSCOW. Aug 7 (Interfax) - The Finance Ministry and the Energy Ministry have been instructed to introduce amendments to the Tax Code during the State Duma's autumn session to increase the deviation threshold from indicators in the fuel damper mechanism, beyond which oil companies stop receiving budget payments, several sources familiar with the document told Interfax.

The document does not specify the exact increase in the cut-off threshold; earlier discussions included raising it to 15% and 20% for gasoline from the current 10%, and to 25% and 30% for diesel fuel from the current 20%.

The Finance Ministry proposed a two-stage increase, noting that the matter is under consideration by the government.

One source told Interfax that Deputy Prime Minister Alexander Novak reported to the government a proposal to raise the threshold to 15% for gasoline and to 25% for diesel fuel.

The document also does not specify the date when the changes might take effect. In August, gasoline prices are above the level adjusted for the current cut-off threshold. And although the price is calculated as a monthly average, oil companies fear they may not receive damper payments in August.