The State Duma removed a number of Russian companies from the increased mineral extraction tax on gas

The State Duma adopted in the third reading law, which allows a number of companies to be exempted from the increased mineral extraction tax on gas. An increased mineral extraction tax on gas was introduced on January 1, 2024 to withdraw into the budget additional revenues of gas production companies received from the indexation of gas tariffs.

The law, which came into force in 2024, did not apply to gas supplied to the population, boiler houses and thermal power plants, as well as enterprises processing associated petroleum gas. The amendments approved today also exclude from the calculation of the mineral extraction tax the volumes of gas that Russia should receive under the agreement on the development of the Piltun-Astokhskoye and Lunskoye fields (included in the Sakhalin-2 project) as a royalty for its sale to consumers. In addition, the volumes of gas from organizations producing LNG, as well as gas sent for the production of thermal and electrical energy in relation to the volumes of fuel required for production at regulated tariffs, are excluded from the tax calculation.

The law must come into force on the date of official publication, with the exception of VAT regulations, which will come into force later. At the same time, the provisions on mineral extraction tax will apply to legal relations arising from January 1, 2024.

Read more about the increase in the mineral extraction tax in the Kommersant article “Gas Equation”.