PRESS: Rosneft asks for 145 bln rbl of tax benefits per year

MOSCOW, Mar 7 (PRIME) -- Oil major Rosneft’s CEO Igor Sechin has asked Russian President Vladimir Putin to introduce 145 billion rubles of tax benefits per year for the company, Kommersant business daily reported on Wednesday.

Sechin suggested tying the benefits to a partial switch to the added income tax from the mineral extraction tax (MET). The reform should be launched at 35 pilot projects starting from 2019. The added income tax should be collected from the income on sales of oil less the duty, the reduced MET rate and costs, the business daily said.

Sechin said that the unequal position of refineries located close to the borders and far from them was behind the request. He said that 85 million tonnes of refining capacities will need state support, Kommersant reported.

Putin ordered the government to consider Sechin’s ideas. The Energy Ministry said it was against the suggestion as tying tax benefits to the introduction of the added income tax would be unreasonable, Kommersant said.

Oil major Lukoil also asked the government to cut excise rates on Euro-5 class gasoline and not to raise the excises from July 1. Vice President Gennady Fedotov said that the increase in excises reduced efficiency of domestic supplies of oil products on the background of restriction of hikes in fuel prices.

The company also suggested introduction of special investment contracts and investment exemptions from the profit tax to support “socially important” oil refineries with loss-making logistics. Positions of Gazprom Neft and Tatneft have not changed since late 2017 – they support returning part of spending on output of oil products to refineries, Kommersant reported.

(56.5041 rubles – U.S. $1)

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