Russian indus min suggests tax incentives for Arctic exploration

MOSCOW/ST.PETERSBURG, Apr 10 (PRIME) -- Russia’s Industry and Trade Ministry has suggested reducing the profit and property taxes and a coefficient for the mineral extraction tax (MET) as an incentive for exploration of Arctic mineral resources, a representative of the authority told PRIME on Wednesday.

“Taking into account the severe climatic and infrastructure restrictions which industrial companies face while working on investment projects, the Industry and Trade Ministry has submitted a proposal to the Far East Development Ministry on the possibility to adjust the tax legislation in several areas, including the measures of tax incentivizing by reduction of the profit tax on the first phases of large investment projects in mineral resource development, application of a reduced coefficient on mineral resource extraction (as applied by the Far East Development Ministry),” the official said.

Late on Tuesday, Novatek and Norilsk Nickel asked to provide profit tax preferences as incentives for geological exploration s in the Arctic and to extend measures applied on the Far East and in several Siberian regions for the entire arctic zone of Russia.

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