Policy & Regulation

Russia could reduce extraction tax for Gazprom JVs

The Russian government is considering whether to amend its Mineral Extraction Tax, but such a move is far from straightforward The Russian government is considering whether to amend its Mineral Extraction Tax, but such a move is far from straightforward.
By Therese Robinson 3 November 2017 0 28232
gas plant in siberia A gas plant jointly run by BASF and Gazprom in Siberia. (BASF)

The Russian government is considering reducing the Mineral Extraction Tax (MET) on joint venture projects between Gazprom and foreign partners, Prime Minister Dmitry Medvedev said last week during a meeting of the Foreign Investment Advisory Council.

Kurt Bock, the chief executive of German chemical company BASF, asked the Russian government to consider reducing the MET for Gazprom’s JVs with foreign partners, Russian business daily Kommersant reported on 26 October. 

However, it is difficult to say whether this request will be granted, Ekaterina Rodina, an analyst...