Page 15 - GLNG Week 45 2022
P. 15
GLNG EUROPE GLNG
Russia jacks up tax on LNG
POLICY RUSSIA has increased the tax rate for LNG September that the finance ministry was con-
exporters in order to replenish its shrunken sidering a hike in taxes on all energy exports,
budget funds that have been expended on the targeting an extra RUB1.4 trillion ($50bn) in
invasion of Ukraine and hit by the impact of revenues in 2023. The tax on LNG deliveries
sanctions and other political fallout from the alone is projected by the ministry to bring in an
war. extra RUB200bn ($3.25bn) in government rev-
The Russian parliament’s committee on enues next year.
budget and taxes approved an amendment to the Russian oil and gas companies already face
tax code that will increase the tax rate from 20% one of the largest tax burdens on the industry
to 34%, with the measure to be applied between in the world, and so the further increases could
2023 and 2025. However, it will only apply to stifle investment in new projects. Those same
companies that began exporting LNG before companies have been supported by higher inter-
the end of this year. It will therefore affect the national prices over the past year and are enjoy-
Gazprom-run Sakhalin-2 project in the Far East ing record profits, but have already seen their
and the Novatek-led Yamal LNG terminal in the export volumes dip as a result of sanctions and
Arctic. Smaller projects such as Gazprom’s Por- Western buyers refusing to purchase. The fact
tovaya LNG plant and Novatek’s Cryogas-Vy- that the ruble has been kept strong under strict
sotsk plant in north-west Russia would also be government controls, in spite of the crisis, has
affected. not helped matters.
The approval of the increase comes after
Russia’s Kommersant newspaper reported in
Week 45 10•November•2022 www. NEWSBASE .com P15
