Russia's Energy Ministry has proposed that the government lowers taxes on oil from the northern sector of the Caspian Sea being developed by LUKoil, the country's largest private oil company, Energy Minister Sergei Shmatko said on Tuesday.
"We have worked out a draft resolution, the Finance Ministry has endorsed it and we sent it to (Deputy Prime Minister Viktor) Zubkov's customs and tariff committee for consideration," Shmatko said.
The draft regulation includes lower export duties for LUKoil's Caspian production, similar to lower rates allowed for East Siberian oil, he said.
"We are not talking about zero taxes, we have decided to use a similar method. At the same time, an economic model must guarantee a payback and (production) profitability. We will set the discounts, taking this fact into account," he said.
The government will approve the resolution in the shortest possible time, Shmatko said.
NIZHNY NOVGOROD, September 14 (RIA Novosti)
