Prime minister Vladimir Putin said at the meeting in the Leningrad region that  the Russian government is working on a number of tax preferences for oil companies, including reduction of mineral extraction tax rate [Russian: NDPI].  Putin believes, the measures would stimulate oil production and increase capacity of export pipelines and terminals.     

“The rate of the mineral extraction tax  will be lowered”, Putin said. Prime minister said that the draft amendment has been prepared and “should be submitted to the State Duma as soon as possible”.  Putin believes that oil companies should be given seven years’ “tax holidays”, and in addition to the Far East territories, this exemption should also apply to the fields in the Timano-Pechora area, the Yamal Peninsula, and the continental shelf. “Tax holidays should be given to companies involved in exploration and development of new fields”, Putin said.   

Prime minister believes that the scheme of depleted fields management should be changed, and it is also necessary to improve the procedure of depreciation of mineral deposits and introduce a new system of duties and tariffs on oil products.  “The higher the quality of oil products, the lower the excise duty should be”, prime minister proposed.