PRESS: Rosneft can obtain experimental right to gas exports to EU

MOSCOW, Sep 21 (PRIME) -- The Russian government is generally ready to grant oil major Rosneft the right to export 10 billion cubic meters of gas annually to Europe via an agent agreement with gas giant Gazprom, Kommersant business daily reported on Tuesday citing a draft report of Deputy Prime Minister Alexander Novak to President Vladimir Putin.

According to the document, Novak suggests that the Energy Ministry and the Finance Ministry analyze necessary amendments to the taxation legislation, but the final decision is to be made by the president, because Rosneft’s and Gazprom’s positions differ radically.

Kommersant reported that Rosneft CEO Igor Sechin asked Putin for the access to gas exports in August amid record high prices for gas claiming that such an access could ensure full loading of the Nord Stream-2 and the Opal gas pipelines, because Gazprom will be unable to use them fully thanks to the norms of the E.U.’s third energy package.

Rosneft’s exports of 10 billion cubic meters of gas could have added 60 billion rubles of mineral extraction taxes, 100 billion rubles of exports duties, and 50 billion rubles of the company’s income tax and dividends to the budget.

Gazprom, on the contrary, believes that the 2022 gas futures demonstrate that prices for gas are unlikely to stay high in the future so there are no reasons for long-term decisions to adjust the gas exports market and the tax legislation.

(73.3315 – U.S. $1)

End