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Russia’s new gas production tax – the end of government tinkering?

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Report summary

The new MET formula aims to be a clear predictable and dynamic tax that provides greater certainty to operators. Instead of two standard rates for gas and one standard condensate rate all fields are now subject to individual gas and condensate MET rates. The desire for the government to tinker with the formula should be reduced as the rates automatically increase in a rising price environment. Both Gazprom and the independents will benefit from a range of discounts in the new MET formula.

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  • Gas MET rate evolution

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