Russian Cabinet Backs Draft Law on Wider Fuel Tax Break: Sazanov

Russia’s government approved draft law on wider fuel tax breaks aimed at partially compensating oil producers if export fuel prices exceed domestic rates, Deputy Finance Minister Alexei Sazanov said in Moscow.

• The tax breaks raise the compensation to 83% of the difference between export and baseline domestic prices for gasoline and diesel
  • Currently the compensation is 68% for gasoline and 65% for diesel
• The total compensation between 2022 and 2024 is seen at 650.7b rubles based on oil price of $80/bbl and exchange rate at 74 rubles/$1 and if the tax breaks start April 1
• The draft law is also ...