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. Last Updated: 07/27/2016

LUKoil Gets Incentives to Expand Port

LUKoil, Russia's biggest oil producer and refiner, received tax breaks and promises of support from the Leningrad region for projects to build filling stations and expand capacity at the Vysotsk terminal on the Baltic Sea.

The Leningrad region will promote LUKoil's plans to expand the terminal and rail links with federal and regional regulators and support the company as it buys land to build filling stations, the company said in a statement Wednesday.

LUKoil is considering a $150 million project to expand the Vysotsk terminal to load as much as 15 million tons of oil products per year, Interfax reported, citing CEO Vagit Alekperov in St. Petersburg on Wednesday. The terminal's current project capacity is 11.6 million tons.

The Leningrad administration will also draft bills that would lower the profit tax rate to 13.5 percent from 17.5 percent for companies that invest in projects to increase oil products supplies to the region, LUKoil said in the statement.

Companies benefiting from the tax break would also be expected to spend half of the amount saved on social and sports projects.