MOSCOW (Pakistan Point News / Sputnik - 24th August, 2018) The issue of possible introduction of windfall profits tax for Russian mining and chemical industries is yet unresolved and is under discussion, Kremlin spokesman Dmitry Peskov told reporters on Friday.
In early August, Kremlin aide Andrei Belousov asked Russian President Vladimir Putin to consider taking out up to 500 billion rubles ($7.4 billion) of annual extra profits of metals, petrochemicals and fertilizers producers. According to Belousov's letter, these companies may include Evraz, NLMK, Norilsk Nickel, Severstal, MMK, Metalloinvest, SUEK, Mechel, Alrosa, Polyus, Sibur, PhosAgro, Uralkali and Acron. On Friday, Belousov and First Deputy Prime Minister, Finance Minister Anton Siluanov met with heads of Russian metal, mining and chemical companies to discuss higher tax rate on their above-average profits.
"As of now, there is a position of Belousov, there is a position of other departments. That is, the position, as it is, is not confirmed yet, it is not formulated as the Kremlin's or the government's position, it is still under discussion," Peskov told reporters, asked whether there were any compromise options in the Kremlin regarding the windfall profits tax introduction.
On August 12, Siluanov said that, when drafting a report on the Belousov proposal, the government would take into account the companies' arguments and study possible consequences for the investment climate. He stressed that no decisions were being drafted on tax increases for these sectors.
Russian metallurgical, oil and gas and chemical companies are the country's main export earners. The exporters' profits now see some so-called windfall gain due to macroeconomic factors such as ruble's weakening against major currencies, Dollar and euro, in which their products are usually priced.
