Russia considering $50-B hike in taxes on oil, gas in 2023-2025 -Kommersant

An oil pipe is seen in front of a drilling rig at a Lukoil-owned oil field outside the West Siberian city of Kogalym, Russia. REUTERS/Sergei Karpukhin/File Photo

Russia is considering raising taxes on the oil and gas sector to the tune of 3 trillion rubles ($50 billion) in 2023-2025 in order to plug the budget gap, the Kommersant daily said on Tuesday, citing sources familiar with the discussions.

The finance ministry declined to comment.

The ministry expects a budget deficit of 1.2 percent of gross domestic product (GDP) this year and 1.1 percent of GDP in 2023 amid spending for what Moscow calls a “special military operation” in Ukraine and sweeping Western sanctions.

The government wants, in particular, to raise the export duty on gas to up to 50 percent, start levying a duty on liquefied natural gas (LNG) and raise domestic gas prices so that companies pay more in minerals extraction tax, the paper said.

The finance ministry has also proposed hiking the oil export duty and increasing state revenue from the oil products trade.

The newspaper said the finance ministry seeks to raise some 1.4 trillion rubles in 2023 alone by hiking export duties and mineral extraction tax on commodities.

The newspaper said the measures, which also include a possible rise in the oil exports duty in 2023 by 50 percent, will be considered at a government meeting later on Tuesday.

($1 = 60.1500 rubles)