Russia Approves Tax Breaks for Black Sea Fields

23 July 2009 (Last Updated July 23rd, 2009 18:30)

The Russian Government has granted tax breaks for oilfields in the Black Sea and the eastern Sea of Okhotsk as part of plans to increase oil production from new provinces, Reuters reported. The tax breaks will be in place for 15 years, or until 20 million tons of oil are produced

The Russian Government has granted tax breaks for oilfields in the Black Sea and the eastern Sea of Okhotsk as part of plans to increase oil production from new provinces, Reuters reported.

The tax breaks will be in place for 15 years, or until 20 million tons of oil are produced from the Black Sea fields.

Oil companies working on the Sea of Okhotsk will also be given tax breaks for about 15 years or until 30 million tons of oil are extracted.

Russia is changing its tax law to revive oil production increase, which reversed to a fall in 2008 after a decade-long boom.

East Siberian fields, the Caspian, the Sea of Azov and the Arctic alongside the Yamal peninsula and the northern Timan-Pechora province have already been granted a zero mineral extraction tax.