Russian govt not discussing amendments to fuel damper, tax breaks for fuel and energy companies, incentives for hard-to-recover reserves; budget does not permit this - Finance Ministry

ST. PETERSBURG. March 19 (Interfax) - The government is currently not discussing adjusting the fuel damper, providing tax breaks to Gazprom or Transneft , or presenting incentives to develop hard-to-recover oil reserves, Deputy Finance Minister Alexei Sazanov told reporters.

"Adjusting the fuel damper is not currently under discussion," Sazanov said. Oil producers had previously requested that the maximum discount on Russian oil be reinstated in the damper calculation.

Sazanov also does not see the possibility of providing tax breaks to Gazprom or Transneft.

"There are currently no budgetary sources for additional tax breaks or preferences, and they are not currently under discussion," he said.

Sazanov also emphasized that incentives to develop hard-to-recover oil reserves are only possible outside the budget cycle.

"Companies are providing financial models, and we will see. In any case, any changes to hard-to-recover oil reserves are possible outside the budget cycle, meaning a three-year period. We currently have a budget deficit, and there are no sources for any additional tax expenditures," Sazanov said.