Shtokman developers put pressure on Murmansk

In a recent meeting with the leaders of the Murmansk regional Duma, representatives of the two companies reiterated calls for better tax conditions in the region. According to Kirill Molotsov, Vice Director of the Shtokman Development AG, his company is proposing several amendments in regional legislation all meant to “secure a mutually beneficial partnership between the investors and the region”, a press release from SDAG reads.

According to members of the regional Duma, the legislative changes are all aimed at lowering the tax level for the project developers. Among the proposed measures are lower taxes on corporate incomes and property, a press release from the Duma states.

Over the last years, the lion’s share of taxes collected in the Russian regions has been transferred to Moscow and the federal budget. The regions are left with only a minor share of the regional tax revenues and instead depend on transfers from the federal government. However, with major Shtokman investments in the pipeline, regional authorities in Murmansk still expect to boost taxes and revenues.

Speaker in the Murmansk Duma Yevgenii Nikora in the meeting with the company representatives promised that the regional parliament will soon start a assessment of the legislative amendments proposed.

As previously reported, Gazprom and its partners in the Shtokman Development AG, have on several occasions signaled that tax benefits will be necessary for a successful project implementation. Talking at the Kirkenes Conference in early February this year, President of Statoil Russia Jan Helge Skogen underlined that the Shtokman project will require enormous investments, which can not be justified without a change in Russian fiscal policy.

Read also:Shotkman is profitable without regard to tax relief

From before, Russian authorities have granted favorable tax conditions for the developers of several other complex fields, like in Yamal.

Read also: Zero-tax for Yamal developers