Support The Moscow Times!

Gazprom Warns About Taxes

Increasing taxes on Russia's gas sector will lead to at least a 10 percent drop in production, and another component of capitalization, the value of reserves, will also go down, according to a letter from Gazprom deputy CEO and head of its finances and economics department Andrei Kruglov to Deputy Prime Minister Arkady Dvorkovich cited by Interfax on Tuesday.

Gazprom is losing faith in European revenue, and the Russian market margin could remain the last hope as a source of financing the gas giant, the letter also said.

Kruglov said Gazprom calculated from combined Finance Ministry drafts pertaining to taxing Gazprom in 2012-15 that the growth of tax levies on gas production will amount to an estimated 820 billion rubles ($25.2 billion). "That amount is comparable to the annual cost of current-year investments," he wrote.


Read more

Independent journalism isn’t dead. You can help keep it alive.

As the only remaining independent, English-language news source reporting from Russia, The Moscow Times plays a critical role in connecting Russia to the world.

Editorial decisions are made entirely by journalists in our newsroom, who adhere to the highest ethical standards. We fearlessly cover issues that are often considered off-limits or taboo in Russia, from domestic violence and LGBT issues to the climate crisis and a secretive nuclear blast that exposed unknowing doctors to radiation.

As we approach the holiday season, please consider making a one-time donation — or better still a recurring donation — to The Moscow Times to help us continue producing vital, high-quality journalism about the world’s largest country.