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Amendments to the Tax Code and Law on Customs Tariffs

October 1, 2013

Vladimir Putin signed Federal Law On Amendments to Part 2 Chapter 26 of the Russian Federation’s Tax Code and Article 31 of the Russian Federation’s Law On Customs Tariffs.

The Federal Law stipulates a new regime for calculating the severance tax on natural gas and its condensate, based on the extraction technology applied, deposit depth, geological and geographical features, and price trends in global and domestic markets.

The Federal Law increases the severance tax rate on dehydrated, desalted and stabilised crude oil as follows per tonne of oil produced: 493 rubles from January 1 to December 31, 2014; 530 rubles from January 1 to December 31, 2015; and 559 rubles from January 1 to December 31, 2016.

In addition, the Federal Law provides for the gradual reduction of export duties on crude oil.

October 1, 2013