13 june 2012

Decisions resulting from the meeting on the taxation of the oil and gas sector

The following decisions were adopted as a result of the meeting of June 13, 2012 on the taxation of the oil and gas sector:

1.The Ministry of Economic Development (Andrei Belousov), the Ministry of Energy (Alexander Novak), the Ministry of Finance (Anton Siluanov) and the Federal Customs Service (Andrei Belyaninov) shall review the effects of the implementation of the “60-66” customs tariff regulation regimes based on the performance of the oil and gas sector in 2012 and report back to the Government of the Russian Federation.

Deadline: February 2013.

2.The Ministry of Energy (Alexander Novak), the Ministry of Economic Development (Andrei Belousov), and the Ministry of Finance (Anton Siluanov) shall develop a uniform methodology of granting benefits on export customs duties for oil extracted from new hydrocarbon fields, whose industrial exploitation will begin before January 1, 2016; agreed proposals, along with draft normative-regulatory acts, shall be submitted according to standard procedure to the Government of the Russian Federation.

Deadline: September 1, 2012.

3.The Ministry of Energy (Alexander Novak), the Ministry of Finance (Anton Siluanov), the Ministry of Economic Development (Andrei Belousov) and the Federal Tariff Service (Sergei Novikov), jointly with the oil and gas companies concerned, shall prepare and submit according to standard procedure to the Government of the Russian Federation proposals on fixing the formula for calculating the tax on the extraction of subsoil resources (NDPI) beginning from 2014 for natural gas that takes into account the multicomponent composition of gas, macroeconomic indicators, the price situation in the target markets as well as the economic efficiency of the natural gas extraction project.

Deadline: March 1, 2013.

4.The Ministry of Finance (Anton Siluanov), the Ministry of Economic Development (Andrei Belousov), the Ministry of Energy (Alexander Novak) and the Federal Tariff Service (Sergei Novikov) shall study the amount of the NDPI tax on natural gas and tariffs for hydrocarbon transportation for 2013 and prepare according to standard procedure proposals on amendments to the legislation on taxes and levies, with the possibility of adjusting NDPI tax on natural gas if the rate of indexation of domestic gas prices deviates from the target.

Deadline: September 2012.

5.The Ministry of Industry and Trade (Dmitry Manturov) and the Federal Customs Service (Andrei Belyaninov) in collaboration with the Customs Services of the Republic of Belarus shall analyse the balance of production and consumption of dissolvents and dilutants of complex organic substances (OKPD 24.30.22.370, TN VED TS 3814) on the territory of the Republic of Belarus and the Russian Federation and trace their movement both inside and outside the Customs Union. The results shall be reported to the Government of the Russian Federation.

Deadline: August 2012.

6.Rostekhnadzor (Nikolai Kutyin), the Ministry of Energy (Alexander Novak), the Federal Anti-Monopoly Service (Igor Artemyev) and Rosstandart (Grigory Elkin), in view of the switch as of January 1, 2013 to ecological classes 3 and higher, shall monitor the modernisation of oil refineries and submit quarterly reports to the Government of the Russian Federation.

Deadline: the 25th of every month following the report quarter.

7.The Ministry of Industry and Trade (Dmitry Manturov), the Ministry of Economic Development (Andrei Belousov), the Ministry of Energy (Alexander Novak), the Ministry of Transport (Maxim Sokolov), the Federal Tariff Service (Sergei Novikov) and the Federal Anti-Monopoly Service (Igor Artemyev) jointly with the organisations concerned, shall undertake a comprehensive study of the issues of improving economic and technological interaction between oil and gas and related industries. The results shall be submitted to the Government according to standard procedure.

Deadline: October 1, 2012.

8.The Ministry of Transport (Maxim Sokolov), the Ministry of Energy (Alexander Novak), the Ministry of Economic Development (Andrei Belousov), the Ministry of Finance (Anton Siluanov), the Federal Tariff Service (Sergei Novikov) and the Federal Anti-Monopoly Service (Igor Artemyev), jointly with the organisations concerned, shall analyse and submit proposals on tariffs and prices for services to transport the products of the oil and gas sector.

Deadline: October 1, 2012.

9.Deputy Prime Minister and Head of the Government Staff Vladislav Surkov shall consider the possibility of the participation of the representatives of the oil and gas sector in the work of government commissions when considering issues of normative and legal regulation connected with the development of the oil and gas sector.