Russia Seeks Extra Budget Funds from Natural Gas Tax Hike

SEATTLE (Oil Monster): Russia plans to secure additional budget revenues by raising gas prices for domestic industrial consumers and a subsequent increase in mineral extraction tax (MET), a source familiar with the plans told Reuters on Monday.

Interfax news agency reported last week, citing a document prepared to explain new budget parameters, that the government planned to introduce changes to the calculation of the MET, without providing details.

The source told Reuters on condition of anonymity that the budget will receive some additional funds, which may total up to 130 billion roubles ($1.4 billion), while the increase in MET will be applied to all gas producers including Gazprom (GAZP.MM) and Novatek (NVTK.MM).

The finance ministry did not reply to a request for comment.

Interfax news agency, citing the official documents, said that the government plans to raise 4.7 trillion roubles from MET on gas in 2024-2026.

The government plans to raise wholesale gas tariffs for all the domestic consumers by 11.2% in 2024 and further by 8.2% in 2025.

Courtesy: www.reuters.com