2 Nov 2023 10:14

Damper for oil cos might be offset at expense of export-oriented refineries, gas cos getting high damper - Russian Energy Ministry

ST. PETERSBURG. Nov 2 (Interfax) - Russian ministries are considering offsetting payments of damper subsidies for fuel at the expense of export-oriented oil refineries and gas companies that receive a higher damper, Energy Minister Nikolai Shulginov told reporters.

"We're working on the details with the Finance Ministry. This must be a joint decision. We still have to find common solutions; we'll discuss and table them. Solutions related to the return of the damper, solutions related to providing sources of compensation, including the expansion of compensation for the damper on gas for those who receive a higher damper. We will also consider the possibility of fairer taxation of export-oriented oil refineries," Shulginov said.

Interfax sources said this might refer to raising the mineral extraction tax (MET) for gas giant Gazprom , which has two plants that produce gasoline from condensate and therefore do not pay the MET on oil.

The government's press service said at the beginning of October that a decision had been made to amend the Tax Code and restore the amount of fuel damper payments to oil companies as of October 1 by raising the coefficient for the damper back to 1.0 from 0.5, to which it was reduced in September. However, a legislative move to change the damper has not been made yet.