Tax Breaks introduced for Russia-China Gas Deal
Following a major 30-year gas supply deal signed by the Russia and China on May 21, 2014, the two countries are discussing the introduction of tax breaks on both sides of the border.
Gazprom, Russia’s state-owned gas company, signed an agreement with its Chinese counterpart, the China National Petroleum Corporation, to supply 38 billion cubic meters of gas per year from 2018, following several years of negotiations.
Russian President Vladimir Putin has proposed scrapping the mineral extraction tax (MET) for gas fields on supplies to China. China meanwhile said it would consider granting a tax exemption for imports of gas from Russia.
The issue of cancelling the MET is still up for discussion, Russian Minister for Economic Development Alexei Ulyukayev said. The minister noted that the Finance Ministry has raised some objections.
Source: tax-news
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