The Kremlin has exempted Gazprom from paying an additional 600 billion rubles in mineral extraction tax (MET) annually due to the company’s record financial losses. According to the amendments to the Tax Code approved by the State Duma, Gazprom will stop paying this additional tax, which was introduced in early 2023, starting in 2025. Previously, it was planned that revenues from this tax would reach 600 billion rubles annually by the end of 2025 – Moscow Times.
The decision to abolish the tax was made amid a sharp deterioration in Gazprom’s financial position. In 2022, for the first time since 1999, the company suffered a net loss of 629 billion rubles under International Financial Reporting Standards (IFRS). The reason for this was a significant drop in pipeline gas exports, especially to Europe, which reached its lowest level since the late 1970s.
Although Gazprom made a profit in the first half of 2024 (1.042 trillion rubles), its gas business remained at a loss, amounting to 480 billion rubles.
Leave a Reply