📋 Tender Overview
The law provides for the zeroing of the mineral extraction tax rate for natural gas and gas condensate on the Yamal Peninsula from January 1, 2028.
The State Duma adopted an amendment to the Tax Code in the second and third readings , according to which it is proposed to zero out the mineral extraction tax rate on the extraction of natural gas and gas condensate from the Achimov and Jurassic productive deposits on the Yamal Peninsula from January 1, 2028. The amendment was initiated by the Russian government for the second reading of the bill "On Amendments to Part Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation."
Earlier, TASS, citing a copy of the document with initiatives, reported that a zero rate of mineral extraction tax for hard-to-recover gas in Yamal could be introduced until the accumulated production volume reaches 130 billion cubic meters, but no later than the end of 2037, and for gas condensate – until the accumulated production volume reaches 15 million tons, but also no later than the end of 2037. Thus, the zeroing of mineral extraction tax for Yamal hard-to-recover gas and gas condensate is envisaged for a maximum of 10 years.
In addition, the tax deduction for gas condensate used for the production of NGL (wide fraction of light hydrocarbons – TASS note) is cancelled, and the profit tax for the V. Filanovsky field (developed by Lukoil in the Caspian Sea) is increased from 34% to 40% from January 1, 2025.
Earlier, Novatek called on the government to create a program to support technologies for the extraction of hard-to-recover gas, the company estimates its reserves at 5 trillion cubic meters, and the extraction potential at 70 billion cubic meters per year. Gazprom also announced the possibility of supporting the extraction of hard-to-recover gas. The head of the State Reserves Commission, Igor Shpurov, also proposed introducing tax breaks and other incentives for the extraction of hard-to-recover gas.
