Russia is considering increasing taxes on the oil and gas sector to 3 trillion roubles (USD 50 billion) in 2023-2025, mainly to plug the budget gap. The finance ministry, however, declined to comment.
The finance ministry expects a budget deficit of 1.2 per cent of gross domestic product (GDP) this year and 1.1 per cent of GDP in 2023 amid spending for a ‘special military operation’ in Ukraine and sweeping Western sanctions.

Reportedly, the government is considering a hike in the export duty on gas to up to 50 per cent. It also wants to start levying a duty on liquefied natural gas (LNG) and increase domestic gas prices so that companies pay more in minerals extraction tax. In addition, the finance ministry has proposed raising the oil export duty and increasing state revenue from the oil products trade.

As per the media reports, the finance ministry seeks to increase some 1.4 trillion roubles in 2023 by raising export duties and mineral extraction tax on commodities. Media reports also suggest that the measures, which include a possible hike in the oil exports duty in 2023 by 50 per cent, would be considered at a government meeting later on Tuesday.