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. Last Updated: 07/27/2016

State Approves Oil Field Tax Break

The government on Thursday approved tax breaks for oil fields on the Black Sea and the far eastern Sea of Okhotsk as it seeks to boost oil production from new regions.

The government said in documents that tax breaks would apply for up to 15 years, or until 20 million tons of crude were produced from Black Sea fields.

Oil firms working on the Sea of Okhotsk will also be granted tax breaks for up to 15 years, or until 30 million tons are extracted.

Russia, the world’s second-largest oil exporter, is amending its tax legislation to revive oil output growth, which reversed to a fall last year after a decade-long boom. Production has been stagnant this year.

Tax breaks, including a zero mineral extraction tax, had already been introduced for eastern Siberian fields, the Caspian, the Sea of Azov and the Arctic alongside the Yamal Peninsula and the northern Timan-Pechora region.

n Also on Thursday, Prime Minister Vladimir Putin proposed that a fixed rate for the extraction of coal should be introduced because the current system doesn’t take into account field specifics, Interfax reported.