Russia FinMin considers faster rise in tax for oil extraction

Russia FinMin considers faster rise in tax for oil extraction

BY ANDREY OSTROUKH

MOSCOW -- Russia's Finance Ministry could increase its mineral extraction tax on oil for 2014 to 2015 at a faster rate than originally proposed, Finance Minister Anton Siluanov told reporters, as the country looks for ways to subsidise falling revenues to funds set aside for road building.

"We won't be instantly able to compensate for falling revenues with a rapid rise in excises for oil products. That's why at the Finance Ministry we are working on finding other sources" he said. "In 2014-2015 we may consider a faster increase in mineral extraction taxes on oil and oil products."

The additional funds would be used to build roads, Mr. Siluanov said. The mineral extraction tax is one of two main taxes paid by Russia's oil industry. The other is an export duty. Russia's federal budget relies on oil and gas for around 50% of its revenue.

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