The duty will amount to 30% if the gas price is below $300 per 1,000 cubic meters and 50% at a price above $300 per 1,000 cubic meters, the document says.
In 2023-2025, the government expects additional revenues to the federal budget thanks to the adoption of a number of other measures in the oil and gas industry. In particular, the authorities plan to increase the mineral extraction tax rate for natural gas "equivalent to an additional adjustment of gas tariffs by 3 percentage points annually in 2023 and 2024." Also, exporters of liquefied natural gas (LNG) will contribute to additional budget revenues.
According to Kommersant, to cover the budget deficit, the government wants to collect about 1.4 trillion rubles from raw material exporters. in 2023 by increasing export duties and MET rates. Among other things, it is proposed to increase the export duty on gas to 50%, introduce a duty or its equivalent for LNG exports, as well as raise gas prices within the Russian Federation and then withdraw this money from gas companies through an increase in the severance tax. Also discussed is an increase in the export duty on oil for 2023 and an extension of the adjusted damper for gasoline. The government will consider these measures, which in 2023-2025 can give the budget an additional more than 3 trillion rubles, on September 20.
Separately, the Russian government hopes to raise an additional 3 trillion rubles from increased or new taxes on oil and gas companies. An increase in taxes the export of coal and fertilizers is also being considered.
While poor market performance is hardly an indication of military defeat on the battlefield, that Russia’s energy stocks in particular have languished around lows not seen since the height of the pandemic in 2020, and the MOEX index overall hovering around the lowest level in five years, is hardly a ringing endorsement of the war. Russia might yet win on the battlefield, but it has already paid a high economic price, and that price is only going to increase going forward.
Speaking of forex, have you checked a EUR-USD chart today? Looks to me like the Euro has broken that last bit of support near $1.00 today. The question now, is: How low can it go?
The Russian stock market is heavily weighted with fossil fuels, and markets for fossil fuels worldwide have been dropping like a rock. The key takeaway is that markets worldwide think they see a severe recession which will squelch demand. So, rough times ahead, war or no war.
Russian Markets Take A Dim View Of Mobilization
Speaking of forex, have you checked a EUR-USD chart today? Looks to me like the Euro has broken that last bit of support near $1.00 today. The question now, is: How low can it go?
The Russian stock market is heavily weighted with fossil fuels, and markets for fossil fuels worldwide have been dropping like a rock. The key takeaway is that markets worldwide think they see a severe recession which will squelch demand. So, rough times ahead, war or no war.