MOSCOW May 26 The Russian government cleared on
Monday a proposal to reduce the mineral extraction tax on oil,
the first of many steps it is planning in order to revive
production growth in the key industry.
The government approved amendments to the tax code under
which the tax-free threshold for mineral extraction tax will
rise to $15 per barrel from the current $9. The amendment needs
to be approved by parliament.
Finance Minister Alexei Kudrin has said the measure will
allow oil firms to save over $4 billion annually and invest this
money into new projects to spur production growth.
Former president and current prime minister Vladimir Putin
has also promised to introduce tax breaks for new oil-producing
regions such as the Arctic shelf, Yamal and Timan-Pechora.
(Reporting by Darya Korsunskaya, writing by Dmitry Zhdannikov;
editing by Amie Ferris-Rotman)