Kremlin cuts taxes on natural resources

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MOSCOW, July 22 (UPI) -- A move to eliminate the extraction tax for offshore mineral deposits will help bring investors to the Russian continental shelf, the deputy prime minister said.

Russian President Dmitry Medvedev signed a measure that eliminates the extraction tax for resource deposits in the Black and Okhotsk seas.

"According to our data, the measures will certainly help us considerably increase investment in the resource base of the new regions, including new shelf projects," Russian Deputy Prime Minister Igor Sechin was quoted by state-run news agency RIA Novosti as saying. "This is an important law that allows us to attract investors."

Under the measure, a duty on resource production in the Yamalo-Nenets region is abolished for oil volumes of more than 25 million tons and for accumulated production of more than 8 trillion cubic feet of natural gas.

The announcement follows a visit to the autonomous northern region by members of Russian gas company Gazprom.

"The Yamal fields will help significantly build up gas production that is especially important against the backdrop of soaring gas demand both is Russia and abroad," the company said.