The decision about transition of some oil production projects to taxation of additional income from oil production

The Russian profile ministries and agencies discuss the possible mechanism for the transition of some oil production projects to taxation of additional income from oil production (NDD). The decision can be agreed in 2014, 2 officials close to the discussion claim.

A source in the Ministry of Finances says that the measure is unlikely to be applied to the whole oil sector that’s why they work with the companies in order to present it for the separate projects. The use of NDD will be fixed in the Tax Code, and the projects classifier will be introduced to the Code for that.

A source in the Ministry of Energy confirms to the agency that this variant is discussed. The Ministries are going to present their coordinated position to the Government in December.