Government may set zero gas production tax for certain Gazprom fields

According to Russian business daily Vedomosti (6 November 2012),  the government may set differentiated rates of gas production tax, with increased rates for most fields in Yamalo-Nenets Autonomous Okrug ( other than Yamal and Gydan – up 1.6 times), the basic rate for Yamal, Gydan and the European part of Russia, and a zero rate for Eastern Siberia and the Far East for 25 years.

The key beneficiary of the zero rate will be state-controlled Gazprom, which will produce gas at the Chayanda and Kovytka – fields that require significant infrastructure investments, including the construction of an Eastern Siberia-Khabarovsk-Vladivostok gas pipeline costing an estimated USD 25 billion.

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