Russian President Vladimir Putin has signed the Federal Law “On introduction of amendments into Part 2 of the Tax Code of the Russian Federation”.
According to the Kremlin’s statement, the Federal Law is to stimulate the activities on search, evaluation, exploration and production of hydrocarbons in the Arctic zone of the Russian Federation.
The law stipulates reduced severance tax rates at new high-seas hydrocarbon deposits.
Besides, zero severance tax rates are foreseen for liquefied natural gas (LNG) and gas-chemical production projects for a period of 12 years during gas production in the Arkhangelsk Region, Komi, Yakutia, the Krasnoyarsk Territory, the Yamal-Nenets and Chukotka autonomous areas up to production volume of 250 billon cbm.
It also introduces a deduction of mineral extraction tax for oil North of 67° and South of 69° North latitude within the Krasnoyarsk Territory if the license is provided before 1 January 2019.