Support The Moscow Times!

BASF May Scrap Project

The government's proposed increase in mineral extraction tax has deterred Germany's Wintershall from taking part in a gas field project in the country, an official of Gazprom said, Interfax reported.

Last year, Gazprom and BASF signed an agreement opening the way for Wintershall, BASF's oil and gas unit, to increase its stake in the Achimov layers of the Urengoi deposit in Siberia.

But Karen Oganyan, the head of Gazprom's tax policy department, said Wednesday that Wintershall may abandon the plan to develop the fourth and fifth Achimov beds at the deposit.

"The head of BASF's management board wrote a letter to Russian President Vladimir Putin saying that after the increase in the mineral extraction tax rate the project becomes unfeasible and the company is not interested in participation in it," he said.

(Reuters)

Related articles:

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.