Gazprom Neft Wary of New Taxes

October 7, 2013

New proposals to tweak taxes for oil extraction and exports will have a negative impact on oil production, the head of Russia's fourth-largest crude producer said on Friday, adding that the company will struggle to keep up its output next year, Reuters reported on October 4.

Alexander Dyukov also reaffirmed the company's commitment to a project in Venezuela, saying that Lukoil, its partner in the Junin-6 oil consortium, had offered to sell its stake to Gazprom Neft after announcing its decision to leave the country.

Russia's parliament has approved new tax proposals, aimed at replenishing the state budget amid increased spending and a faltering economy.

The new initiative, known as the "tax manoeuvre", which would see mineral extraction tax increase and cuts in export duty, is yet to be signed off by Russian President Vladimir Putin.

"Obviously, the tax manoeuvre will force us to change the plans for production. We will try to keep it up, but it will be hard," Dyukov said.

Copyright: Reuters, 2013.