02:48 GMT +3 hours23 November 2014
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E. Siberia Oil Tax Breaks to Raise $300 Bln by 2030

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(updated 18:28 28.10.2014)
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The government’s decisions to offer sweeping tax breaks for new oilfields in East Siberia will yield about $300 billion in additional revenues for the state budget by 2030, Energy Minister Alexander Novak said on Monday.

The government’s decisions to offer sweeping tax breaks for new oilfields in East Siberia will yield about $300 billion in additional revenues for the state budget by 2030, Energy Minister Alexander Novak said on Monday.

The Russian government has decided to extend tax holidays for the extraction of crude oil in East Siberia to January 1, 2022 and reduce the export duty on oil produced at the region’s new deposits almost by half.

“The new decisions will involve new deposits and provide additional oil volumes, which means the receipt of extra tax revenues. The financial and economic calculations prepared jointly with the Finance Ministry suggest we’ll get about $300 billion for the state budget by 2030,” Novak said, adding this amounted to about $15 billion in additional revenues annually.

The government’s new decisions will help additionally tap 5.3 billion metric tons of oil or 70-100 million metric tons annually.

“This will help make up for the shortfall of volumes resulting from the depletion of West Siberian deposits,” Novak said.