MOSCOW (Reuters) - The hearing of a tax dispute between Russia and U.S. oil and gas major ExxonMobil at the Stockholm arbitration court has been delayed while the two sides continue talks to try to reach a settlement, Russia’s finance ministry said on Friday.
The court had been due to hear the case, in which Exxon says it overpaid profit taxes on the Sakhalin-1 oil and gas project in Russia’s far east, on April 24-28.
“The arbitration proceedings have been postponed for a few months. The parties agreed to continue talks with the aim of resolving outstanding issues before trial,” the ministry said.
Exxon lodged its claim for $637 million in over-paid taxes at the Stockholm court in 2015.
Russia reduced its profit tax in 2009 to 20 percent for production-sharing agreements such as Exxon’s Sakhalin-1, but the U.S. energy giant continued to pay at an earlier level of 35 percent after the project broke even in 2008.
Russia said in late March it was willing to settle the dispute in an out-of-court agreement under non-disclosed conditions.