Yamal Authorities Suggest Reviewing Gazprom’s Tax Payments

12.08.2009 — News

YaNAO.

Yuri Neyelov, the Governor of Yamal, has suggested introducing amendments to the Russian tax legislation which would bind OJSC to increase payments to regional budgets. Should these be adopted the gas monopoly will have to pay the profit tax not only at the location of the head office and subsidiary companies but also to budgets of territories where there is property of OJSC Gazprom.

Yamal is Russia's main gas producing region. The production capacities of OJSC Gazprom located in this subject of the Federation define, to a significant degree, the company's capitalisation. In Mr. Neyelov's opinion OJSC Gazprom should pay not only the property tax on real estate to regional budgets, but the property tax on movable assets too.

YaNAO government informed RusBusinessNews that these initiatives may significantly augment the region's budget. Yamal ended the first half of 2009 with a 9.46 billion roubles budget surplus. At the same time the authorities predict a worsening of the financial situation next year.