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Arctic: today and the future

December 10-12, 2020, SAINT PETERSBURG

New oil fields in Taimyr will be exempted from export duty


New oil fields in Taimyr will be exempted from export duty

The Federation Council has approved the law freeing Taimyr from crude export duty from 2021. This is designed as an amendment to the law on customs duty deferral.

Earlier this law was adopted by the State Duma. Deputy Finance Minister Alexei Sazanov said that this amendment is similar to the ones, already adopted in other new oil regions of Eastern Siberia and Krasnoyarsk Territory.

Now oil is exempted from the export duty if it is a subsoil area from the first or secong group of the Additional Income Tax (AIT). The law approved by the Council of Federation adds a fifth group to this list, which was introduced in March and relates to new oil and gas provinces of the Arctic. These are the subsoil areas located fully or partially to the north of 70° North latitude within the boundaries of the Krasnoyarsk region, Yakutia and the Chukotka Autonomous District. This is mainly the Taimyr, where a new oil and gas province may be formed.

However, as explained earlier by Alexey Sazanov, the new fifth category of tax won't  include the Vankor cluster of Rosneft, only the Arctic Taimyr fields. However, for the Vankor cluster the government also previously approved next benefits: Rosneft will receive a 10-year deduction from the severance tax in the amount of expenses incurred for creating the infrastructure necessary for the production of raw materials in the subsoil areas located within the borders of the Taimyr Peninsula.

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