Russian Duma committee approves tax credit of 79.2 bln rubles for to develop two large Yamal fields

MOSCOW. Feb 14 (Interfax) - The State Duma Budget Committee has recommended that the lower house of parliament pass at first reading a bill under which Gazprom Neft could receive a tax deduction on the mineral extraction tax (MET) in 2023-2028 for the development of two fields on the Yamal Peninsula in the amount of 1.1 billion rubles per month, or 79.2 billion rubles over the whole period.

The company would receive an MET deduction of 1.1 billion rubles per month from April 1, 2023 to March 31, 2029 or 79.2 billion rubles for the whole period. The bill also sets out a mechanism for repaying the tax credit to the government in the period from January 1, 2029 through December 31, 2034 in an amount equal to the received tax deduction indexed by 9%. The tax deduction will not be provided if the oil price is lower than or equal to a cut-off price of $45.04 per barrel in 2023.