📋 Tender Overview
The State Duma Committee on Budget and Taxes approved at a meeting on Monday the extension of the zero rate of mineral extraction tax (MET) for new gas and gas condensate production projects, necessary for the production of ammonia and hydrogen, to the entire Arctic zone of the Russian Federation. Previously, the law provided for this benefit only for gas from Yamal and Gydan in the Yamalo-Nenets Autonomous District.
The amendment was introduced by State Duma deputies for the second reading of the bill prepared as part of the formation of the parameters of the federal budget for 2025 and for the planning period of 2026 and 2027.
"This question was raised in exactly the same way when we adopted amendments to Article 342 [of the Tax Code], so that the benefit that is given - a zero rate on the mineral extraction tax on LNG, in one place the use of natural gas for LNG and ammonia and hydrogen, and in two other geographical points this use is not. The benefit itself remains in the same amount that it is, for the same period, but the use of this gas also applies to ammonia and hydrogen," said Olga Anufrieva, First Deputy Chairperson of the State Duma Committee on Budget and Taxes.
State Secretary and Deputy Minister of Finance of the Russian Federation Alexey Sazanov also supported the adoption of the amendment during the meeting.
In 2023, a zero mineral extraction tax rate was established for the extraction of natural gas and gas condensate at subsoil sites in Yamal and Gydan in the Yamalo-Nenets Autonomous Okrug (YaNAO), which are used exclusively for the production of ammonia and hydrogen. Amendments were also approved at that time on the application of a zero mineral extraction tax for gas extraction at subsoil sites "located entirely north of the Arctic Circle, entirely within the boundaries of the Arkhangelsk Region, the Nenets Autonomous Okrug, the Komi Republic, the Yamalo-Nenets Autonomous Okrug, Krasnoyarsk Krai, the Sakha Republic (Yakutia), and the Chukotka Autonomous Okrug" for the production of LNG.
