Zero rate of property tax for Power of Siberia to deprive budget of the Amur region of billions of rubles

The State Duma’s Committee on Budget and Taxes recently approved the proposed changes to the tax code. In their framework a zero rate of property tax with respect to the Power of Siberia gas pipeline and associated gas production and storage facilities will be in force until 2035. The document notes that the benefits will affect only the owner of the Unified Gas Supply System of Russia - Gazprom, the RBC reports. This means that they will continue to levy taxes from pipelines – bands of other gas producers, if their gas still will be Power of Siberia.

Also Gazprom will receive a zero severance tax for the Chayandinskoye and Kovykta fields in the Irkutsk region and Yakutia, which will be a resource base of the new gas pipeline, for the first 15 years. Now the gas monopoly doesn’t intend to transport gas of independent producers via the pipe for the Chinese contract.