Privileges for “Rosneft” to cost $700 mln for the budget

The shortfall in income to the Russia because of the terms of tax concession, connected with the peculiarities of taxation of prepaid interest, which CNPC provides to “Rosneft”, will make up $700 million.

The privileges for Rosneft will cost $700 million. This sum is the size of shortfall in income during the duration of the agreement between Russia and China. The contract's duration, which was signed in March 2013, makes up 25 years. But it can be prolonged for another 5 years.

Under this agreement Rosneft is going to supply 365 million tons of oil to CNPC during 25 years, while the volume of the deal makes up $270 billion.

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Oil and Gas, Metals and Mining, News from Russia and neighbouring countries
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