Posted on 05/14/2008 8:41:05 AM PDT by Red Badger
UST LUGA, Russia, May 14 (Reuters) - Russia's Prime Minister Vladimir Putin urged on Wednesday to grant tax breaks to new oil provinces to revive output growth and add over a tenth to current production levels by 2015. The Russian stock market, dominated heavily by oil stocks, rose 3.5 percent on the news with the oil and gas index jumping 5.14 and No.4 oil firm Surgutneftegaz soaring almost 11 percent. Putin said Russia should grant tax breaks for a period of up to seven years to oil companies developing fields located on Russia's continental shelf, the Yamal peninsula and the northern Timan-Pechora province. Currently such breaks exist only for East Siberia. "It is necessary to introduce tax breaks for companies exploring and developing new deposits. Seven years is a reasonable term," Putin said. He also called on the state Duma lower house of parliament to urgently reduce mineral extraction tax on oil. Russian oil companies have long urged the government to change the tax system, which has not been amended for several years despite rising costs and inflation, to encourage producers to invest in new regions to support falling production. Russia's oil output grew by just 2 percent in 2007 and has moved into negative territory in the first quarter of this year after large spikes earlier this decade, which allowed Russia to exceed production levels at the world's top oil nation, Saudi Arabia, during some months.
(Excerpt) Read more at guardian.co.uk ...
Wait just a minute! You mean even the evil communist Vlad ‘The Impaler’ Putin understands the consequences of tax breaks but Pelosi and Reid don’t ... Our communists need some training!
Former Communists understand the free market system better that current Communists.
I never thought I’d see the day when Russia embraces free market capitalism while the U.S. slides into communism.
Re-education Camps..........
You have to give Putin a hand, he’s looking out for HIS country’s best interests, not everybody else’s.......
Russia had its period of expansion. Now it needs another change of government.
Putin is smarter than the Congress of the United States.
I like him better than McCain. Can he get Bibi Netanyehu as VP and run?
Re-education Camps..........
Without heating or cooling.
Or, Puto, you could try private ownership (again). Or better yet, just put a shotgun in your mouth and pull the trigger. Do Russia and the rest of the world a big favor.
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