PM says Russia to keep MET incentives during oil tax reform

MOSCOW, Jun 21 (PRIME) -- The Russian government want keep existing mineral extraction tax (MET) incentives after changes in the oil taxation system, Prime Minister Dmitry Medvedev said at a government meeting on Thursday.

“These changes will come in force from next year and will be valid for the next six years. To avoid an additional burden on prices, we offer to keep the current MET incentives,” he said.

“I talking about production at new sea deposits, and development of gas condensate which is used in production of liquefied natural gas, on deposits in the Yamalo-Nenets Autonomous District.”

Medvedev added that reduced MET rates will remain for hard-to-recover oil.

The government needs to introduce a draft law on oil taxation changes to the State Duma, the parliament’s lower chamber, as soon as possible, he said.

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