Ministry of Finance approves new MET concessions for oil companies

The Ministry of Finance sent new initiatives on the prolongation of tax concessions during oil production in Yamal and the Nenets autonomous district to the Government. According to amendments to the article 342 of the Tax Code, the Ministry proposes to extend the zero rate of mineral extraction tax (MET) during development of new and depleted fields from 2015 to 2022. Surgutneftegas, Lukoil, Gazpromneft and Rosneft, which work in these regions, will get the main benefit.
The amendments to the Tax Code, developed by the Ministry of Finance, offer to set a zero rate for the oil fields in the Yamal-Nenetsk autonomous district and Nenets autonomous district, which licenses were obtained before January 1 of 2009 and the depletion of which will be 5 % or less as of January 1, 2015. This benefit will be valid until the accumulated volume of oil production at subsoil areas located wholly or partially within these regions (if the period of development doesn’t exceed 7 years from January 1, 2015) will be 15 million tons. In addition, the calculation of the privilege will take into account oil reserves at each site.