Russia Considers Extra Gas Tax to Finance Subsidies for Oil Refiners

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(Bloomberg) -- Russian authorities are considering raising the tax burden on the nation’s natural gas industry to help finance a return to full subsidies for...

US stocks ended Friday's trading session in the red, as the benchmark 10-year Treasury yields hovered just below 5% -- Russian authorities are considering raising the tax burden on the nation’s natural gas industry to help finance a return to full subsidies for oil refiners, as the government seeks to support the domestic fuel market without straining the country’s budget.

Russia’s budget is strained by the costly war in Ukraine, social spending and international sanctions that have dented its oil and gas revenues. With presidential elections scheduled for March, the Kremlin and the government want to make sure the domestic fuel market is stable, and that diesel and gasoline don’t put additional inflationary pressure on the nation’s economy.

Given the significant size of the downstream payouts — which reached some $3 billion for August alone amid a weaker ruble and rising global oil prices — Russia’s government is taking its time to determine how the payouts may be financed.

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Russia Considers Extra Gas Tax to Finance Subsidies for Oil RefinersRussian authorities are considering raising the tax burden on the nation’s gas industry to help finance a return to full subsidies for oil refiners, as the government seeks to support the domestic fuel market without straining the country’s budget.
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