PRESS: Russia can finance Priobskoye incentives from Natl Wealth Fund

MOSCOW, Dec 17 (PRIME) -- The Russian Finance Ministry suggested the government finance all tax incentives for the Priobkoye field of Rosneft and Gazprom Neft, estimated at 60 billion rubles per year, from the National Wealth Fund, business daily Kommersant reported on Tuesday, citing head of the tax and customs policies department of the ministry Alexei Sazanov.

Sazanov said that the ministry suggests a zero tax refund for Rosneft and Gazprom Neft if the oil price is lower than the base level envisaged in the budget, which is $42.4 per barrel in 2020, and a tax refund rising proportionately to the oil price increase till a maximum of 60 billion rubles at a U.S. $65 per barrel oil price.

Under the budget rule, all oil and gas income go to the federal budget if the oil price is below the base level and additional income goes to the National Wealth Fund. The ministry’s proposal will protect the base budget income.

The ministry is ready to forego the Mineral Extraction Tax (MET) on the associated petroleum gas from the field at 385 rubles for 1,000 cubic meters which it proposed earlier to compensate half of a lost budget income.

(62.7686– U.S. $1)

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