Russia approves tax cut to boost oil production

Russia’s parliament on Friday approved a tax cut as part of its effort to
boost the country’s oil production as record prices hit, which would save
Russian oil majors billions of dollars.

Deputies in the lower house voted to raise the tax-free threshold on oil
production from $9 (?4.5) to $15 a barrel from January 1, Forbes
magazine reports, citing Russian newsagency Interfax.

The cut was part of a bigger package which will save Russian oil producers
130 billion rubles ($5.5bn) and help boost production, Russian Energy Minister
Sergei Shmatko said.

‘We anticipate that extraction volumes will be maintained and even increase’
thanks to the measures, Shmatko told journalists. ‘We expect the money to be
spent on the development of new deposits,’ he said.

the Forbes magazine story

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