Russian Rosneft is pushing for state support in development of Arctic shelf

Rosneft is again pushing for state support (tax exemptions) for Arctic projects despite the moratorium agreed at a meeting with President Putin, according to reports in today’s Kommersant Daily. The FinMin still insists that tax incentives for Arctic projects should be frozen until there is a comprehensive analysis of all projects competing for subsidies. An exception was made only for the Priobskoye field. This time, proposals for subsidies for Arctic projects are included in a bill on development of the Far East, which is now under discussion by the government. According to Kommersant, the issue can be decided at a meeting between deputy PMs Kozak and Trutnev shortly, but we think the decision will be taken at a higher level.

Rosneft argues that delaying the subsidies will not allow to meet the presidential instruction to bring shipments through the Arctic route to 80 million tons by 2024. The main project in question is Vostok Oil, where Rosneft wants to attract foreign partners. Among the possible candidates are mentioned BP and a consortium of Indian companies.

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