19 May 2011 14:27

Russian govt ready to apply beneficial rates for new fields if oil prices go below $95 per barrel - Sechin

PURPE. May 19 (Interfax) - Russia's government is ready to review the option of introducing preferred tax rates on new fields if oil prices go below $95 per barrel, Deputy Prime Minister Igor Sechin told journalists on Thursday.

"We have reached principle agreements for this approach for new fields: if oil prices are above $95, they will be developed as they are now without any beneficial rate since the oil price permits this. If prices drop below this level, we will look into the necessity of providing companies some kind of reduced rate," Sechin said.

Sechin added that the pricing regime helps support current operations.