Russia Invests in LNG Project to ‘Diversify’ from Europe
Russian President Vladimir Putin has ordered the government to expand tax breaks to more deposits that will supply gas for the Novatek-led liquefied natural gas project in Russia’s Yamal peninsula, according to the Kremlin’s website.
Putin has urged domestic companies to develop seaborne liquefied natural gas (LNG) and diversify away from cash-strapped Europe where demand for gas has weakened.
The $20 billion (€14.6 Billion) Yamal LNG project, where France’s Total and China National Petroleum Corp (CNPC) also have stakes, enjoys some tax breaks, such as zero mineral extraction tax and export duty from the Yamal fields.
Putin has ordered tax breaks for the fields from the neighbouring Gydan peninsula in the Arctic, where Novatek also has exploration licences, according to documents posted at the Kremlin web site.
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