Russia ready to cut dividend tax for Chinese owners of Yamal LNG

SKOLKOVO, Oct 16 (PRIME) -- Chinese partners of independent gas producer Novatek asked the Russian government to cut the tax on dividends from the Yamal LNG liquefied natural gas project, and the government is ready to do it, if China provides preferences to Russian companies in the country, Deputy Prime Minister Arkady Dvorkovich said on Monday.

In September, Kommersant business daily reported that China asked the government to cut the dividend tax for China’s CNPC and the Silk Road Fund, which own 20% and 9.9% in Yamal LNG, respectively, from 10% as the other foreign owner of 20% in the project – France’s Total – pays only 5% under an agreement between Russia and France.

“Yes, they’ve asked for it,” Dvorkovich said during the Open Innovations forum.

“We are working on that on the principle of mutuality. It would be better if they also cut some rates for our companies that work in China…Or at least provide some preferences as well. We are not in negotiations per se, we have just informed them about the approach. But we are ready for negotiations,” he said.

“This question is being studied now. We are preparing a meeting of government heads. This issue will obviously be discussed there. I don’t know whether it will be official, but it will be discussed.”

The Yamal LNG project envisages construction of a 16.5 million tonne LNG plant.

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