Russia’s Finance Ministry wants to raise oil and gas taxes

Pedestrians walk past the building of the Russian Ministry of Finance in Moscow, Russia, March 30, 2021. A sign reads: ‘Ministry of Finance of the Russian Federation’. REUTERS/Maxim Shemetov

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  • This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine

MOSCOW, Sept 22 (Reuters) – A new Russian budget bill will aim to attract more funds from oil and gas producers amid high commodity prices, Finance Minister Anton Siluanov said on Thursday, as part of a the government’s efforts to attack its budget. deficit.

The Kommersant daily said on Tuesday, citing sources familiar with the talks, that Russia plans to raise taxes on the oil and gas sector by 3 trillion rubles ($50 billion) in 2023-25. Read more

The government said Thursday that it had approved a bill on budgets for 2023 and for the period 2024-2025, without citing any parameters. The bill is submitted to parliament for debate and must then be approved by the president.

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Siluanov told a televised government meeting that the main proposals for the new budget were an increase in export duties for pipeline gas exports, taxes on liquefied natural gas and the introduction of import duties. export for fertilizers and coal.

The Finance Ministry also wants to increase taxation of the oil industry by retaining the so-called fuel tax amortization mechanism and changing a mining tax for crude oil, Siluanov said.

The government expects the budget deficit to rise to 2% of gross domestic product (GDP) next year, falling to 0.7% by 2025.

The RIA news agency said the finance ministry expected this year’s budget deficit to reach 0.9% of GDP, or 1.3 trillion rubles ($22 billion).

Olga Belenkaya of brokerage Finam said the expected increase in the deficit would be taken into account by the central bank when deciding monetary policy.

“Even the budgetary parameters that are under discussion could be exposed to a deterioration of the geopolitical context,” she said, citing a mobilization in Russia to reinforce its forces fighting in what she calls a “special military operation in Ukraine as well as referendums on membership. Russia is detained in Russian-controlled territories in Ukraine.

Siluanov said the government plans to focus on domestic borrowing to fill the budget gap.

According to a document seen by the RIA news agency, the ministry plans to borrow 1.7 trillion rubles ($28.7 billion) in 2023, 1.9 trillion rubles in 2024 and 2 trillion rubles in 2025. ($1 = 59.2500 rubles)

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Reporting by Darya Korsunskaya, Maxim Rodionov and Vladimir Soldatkin; Editing by Kevin Liffey, Mark Potter and Jane Merriman

Our standards: The Thomson Reuters Trust Principles.

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