Source: Russian government talks tax relief for Gazprom

A government source revealed on Monday that the Russian government is considering tax reliefs for the energy giant Gazprom. These could be offset by higher taxes on gas producers in general.

Novatek and Rosneft, two other major gas producers in Russia, are also listed.

Moscow must balance the need for increased military spending in the face of the conflict in Ukraine, with the rising budget deficit as well as providing adequate support to Gazprom which has seen its lucrative sales into Europe fall.

Gazprom lost almost $7 billion dollars in 2023. This was its first loss in over 20 years. Europe boycotted Russian gas because of its actions in Ukraine. The company made $14.8 billion in revenue in 2024 but paid no dividend.

As part of Moscow’s pivot towards the East, the company has now set its sights on increasing gas exports, particularly to China.

Interfax was the first news agency to report the possible government plans to reduce the tax burden for Gazprom in accordance with President Vladimir Putin’s order.

Citing unidentified sources it said that the budget could be compensated if lower taxes were introduced for Gazprom by "appropriating some profit generated from other gas producers."

Source confirms that the government is deliberating, but no decision has yet been made. This year, the government already reduced mineral extraction taxes for Gazprom.

(source: Reuters)