The Cabinet will consider the draft on the abolition of export duties on fuel for offshore exploration activities

© RIA Novosti / Vladimir Astapkovich in fotobanka of the Russian Government. Archival photoThe Cabinet will consider the draft on the abolition of export duties on fuel for offshore exploration activities© RIA Novosti / Vladimir Astapkovich the image Bank

The government of the Russian Federation at session on Thursday will consider a draft law on exemption from customs duties of certain goods intended for the exploration and production of hydrocarbons on the continental shelf, the press service of the Cabinet of Ministers.

«The bill proposes to exempt from payment of export customs duties on fuel, motor oil and lubricants exported from Russia to ensure the functioning of the courts, which are used in the exclusive economic zone or on the continental shelf of the Russian Federation or in the Russian sector of the Caspian seabed for geological study, exploration and production of hydrocarbons», — stated in the message.

Now, foreign goods intended for the establishment and operation of artificial Islands, installations and structures in this area are placed under a special customs procedure without payment of customs duties and taxes and without application of prohibitions and restrictions.

This fuel, motor oil and lubricants exported from Russia to ensure the operation of vessels used in this area for geological study, exploration and production of hydrocarbons are subject to export customs duties. This reduces the effectiveness of geological exploration of subsoil and extraction of hydrocarbons on the continental shelf, notes the Cabinet.

Privileges on payment of export customs duties is envisaged for vessels for geological study, exploration and production of hydrocarbons, and ships supplies and search-and-rescue vessels used for these operations. The benefit will be granted provided that the person in whose interests the work is underway, will provide a written undertaking to target the use of exported goods.

Amendments to the law «On customs tariff» was developed by the Ministry of energy.

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