State Duma zeroes MET for Novatek’s project in Yamal

MOSCOW, Jul 12 (PRIME) -- The parliament’s lower chamber State Duma on Wednesday approved in the second and third readings a bill that zeroes the mineral extraction tax (MET) for independent gas producer Novatek’s Obsky Gas Chemical Complex in the Yamal Peninsula.

The bill zeroes the MET for production of natural gas and gas condensate produced on the fields fully or partially located in the Yamal and Gydan peninsulas that will be later used in production of ammonia and hydrogen.

The latest amendments stipulate that the bill comes into force from January 1, 2024. The MET is zeroed for the sales of natural gas and gas condensate within one group of companies for the purpose of production of liquefied natural gas (LNG). The MET is zeroed for intra-group sales of gas for production of ammonia and hydrogen.

Another amendment introduced during the second reading allows Russia’s regions to introduce their own laws that reduce the corporate profit tax for the companies that make ammonia and hydrogen from natural gas and gas condensate produced at the facilities outside the Yamalo-Nenets Autonomous District after January 1, 2025.

To become law, the bill must pass two readings in the upper chamber Federation Council before being signed by the president.

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