According to Russian Ministry of Natural Resources,the introduction of the deduction of expenses for geological exploration from MET to increase oil reserves by 2 billion tons before 2035

According to the calculations of the Russian Ministry of Natural Resources, the introduction of the deduction of expenses for geological exploration from MET or profit tax will increase oil reserves by 2 billion tons before 2035, including through new discoveries. This will also ensure the additional production up to 400 million tons, the Minister of Natural Resources and Environment, Sergei Donskoy stated during the International Investment Forum "Sochi-2014".

According to him, the pace of geological exploration in Russia "is completely inadequate for the future" due to the fact that companies are not interested in large-scale search for new mineral deposits, as there are no legal mechanisms that encourage the exploration. The Minister cited the example of taxation in some countries where the proportion of natural resource rent is traditionally high. The taxation in the oil and gas production in such countries is based on the profit, and geological exploration is specifically stimulated. "The solution, in our opinion, could be the introduction of the system of the deduction of expenses for geological exploration from MET or profit tax base. There is an analogue in the legislation – the deductions of costs for provision of industrial safety in mines from the coal MET," - S.Donskoy said.