Russia’s government will have to pick between adding revenue and bolstering plans to make Moscow a global financial hub as it debates a tax on Eurobond coupon payments, according to Deputy Finance Minister Sergei Shatalov.
OAO Bashneft and OAO Tatneft want to curb losses from proposed changes to Russia’s export taxes on oil by asking for compensation of as much as 9 billion rubles ($329 million) a year, Russia’s Finance Ministry said.
Russia’s Finance Ministry proposed doubling the mineral extraction tax next year for OAO Gazprom , the gas export and pipeline monopoly, with further increases to follow as the government seeks to boost budget revenue.
Russia’s Finance Ministry hasn’t started discussing tax breaks for the OAO Gazprom-led Shtokman venture two months before an investment deadline because the operator hasn’t submitted profitability estimates.
Russia’s Finance Ministry may scrap plans to start collecting a 20 percent tax on Eurobond interest payments after oppostion at a meeting with bankers in Moscow yesterday, according to Barclays Capital.