Russian oilmen to receive tax breaks for geological prospecting

February 7, 2014

The Russian environment ministry has asked the government to stimulate geological prospecting with tax breaks and to introduce punishment for the failure to meet obligations regarding geological prospecting.

In particular, the ministry suggested royalty cuts by 60% of investment in new oil and gas deposits and cutting the one-off payments for using natural resources after opening new deposits.

The ministry also suggested lowering the threshold for the category of federal significance blocks to 70 from 150 million tons of recoverable oil reserves.
Copyright: ProNedra, 2014