Russia is considering an increase in taxes on the oil & gas sector to $50 billion in 2023-2025 to help bridge the budget gap, according to Kommersant daily.
The finance ministry has not released any comments.
A deficit of 1.2% of Gross domestic product is expected this year and a deficit of 1.1% of GDP next year amid soaring spending for what Russia has called a “special military operation” in Ukraine. Sweeping western sanctions have weighed on the Russian economy further.
The government wants to hike the export duty on gas by up to 50%. Moscow also has plans to start levying a duty on liquefied natural gas (LNG) to increase domestic gas prices in a bid to increase companies’ expenditure on minerals extraction tax. Russia’s finance ministry proposed a rise in the oil export duty, aimed at raising state revenue from the oil products trade.
The finance ministry also aims to raise 1.4 trillion roubles next year, according to the newspaper. This comes against the backdrop of a slew of Western sanctions against Russia ever since its invasion of Ukraine in February.
Europe has been scrambling to rein in soaring energy prices due to a supply crunch exacerbated by the war in Ukraine.
The measures would be considered at a government meeting later in the day.
Energy prices have surged so fast that France-based design and manufacturing company, Arc International, has had to recalibrate business forecasts as many as six times in two months, joining a list of companies grappling with the effects of an unprecedented price rise.
Meanwhile, China, the world’s biggest contributor to greenhouse gas emissions has stepped up spending on coal amid extreme weather and a domestic energy supply crunch. Beijing has pledged to peak its carbon emissions by 2030 and aims to achieve carbon neutrality by 2060.
