Russia’s Mining Fiscal Regime: H1 2014

Russia has a range of natural resources, including oil fields, coal deposits and many strategic minerals. However, adverse climatic conditions and remote locations make the exploitation of resources difficult. The mining industry in Russia is governed by the Ministry of Natural Resources and Environment of the Russian Federation, and the Federal Agency on Mineral Resources. The Subsoil Law is the main law for regulating mining activities in the country.

Scope

The report outlines Russia's governing bodies, governing laws, mine ownership and business licenses, mining rights and obligations, key fiscal terms which includes one-time payments, rents and fees, severance tax, corporate income tax, transport tax, property tax, local taxes, depreciation, tax incentives, withholding tax, loss carry forward and VAT.

Key Highlights

• The Ministry of Energy is a federal executive body responsible for drafting and implementing government policies and legal regulation in sectors including oil and fuel, electric power, renewable energy and hydrocarbons.

• The Ministry of Natural Resources and Environment of the Russian Federation is a federal executive body responsible for formulating state policy. It also devises regulations covering the study, renewal, and conservation of natural resources.

• The Federal Service of Environmental, Technological and Nuclear Surveillance is an authorized agency for issuing mining allotments. The document defining mining allotment boundaries should be included as an integral part of a license.

• The Federal Service for Surveillance in the Sphere of Nature Use is responsible for monitoring environmental protection and subsoil use by license holders. The agency also forwards information on breaches of license terms to the Federal Agency for Subsoil Use.

• The Subsoil Law is the main law in the mining industry, providing all relevant laws and regulations regarding subsoil use in the Russian Federation. Other regional laws on subsoil are also applicable to the mining industry.

Reasons to buy

Gain an overview of Russia's mining fiscal regime.

Companies mentioned

Table of Contents

1 Executive Summary 1

2 Russia’s, Governing Bodies 4

2.1 Ministry of Energy of the Russian Federation 4

2.2 Federal Agency for Mineral Resources 4

2.3 Ministry of Natural Resources and Environment of the Russian Federation 4

2.4 Federal Service for Environmental, Technological, and Nuclear Surveillance 4

2.5 Federal Service for Surveillance in the Sphere of Nature Use 4

3 Russia’s, Governing Laws 5

4 Russia’s, Mine Ownership and Business Licenses 6

4.1 Subsoil Ownership 6

4.2 Business Licenses 6

4.2.1 License for the geological exploration and assessment of a subsoil plot 6

4.2.2 Production license 6

4.2.3 Combined geological research, exploration and production license 6

4.2.4 Termination of license 6

5 Russia’s, Mining Rights and Obligations 7

5.1 Rights 7

5.2 Obligations 7

6 Russia’s, Key Fiscal Terms 8

6.1 One-Time Payments, Rents and Fees 8

6.2 Severance Tax 8

6.2.1 Tax Base 8

6.2.2 Tax Rates 8

6.3 Corporate Income Tax 9

6.4 Transport Tax 9

6.5 Property Tax 9

6.6 Local Taxes: Tax on Land 9

6.7 Depreciation 9

6.8 Tax Incentive 10

6.9 Withholding Tax 10

6.10 Loss Carry Forward 10

6.11 Value Added Tax (VAT) 10

7 Appendix 11

7.1 What is this Report About? 11

7.2 Methodology 11

7.3 Secondary Research 11

7.4 Primary Research 11

7.5 Contact GlobalData 12

7.6 About GlobalData 12

7.7 GlobalData’s Services 13

7.8 Disclaimer 14

List of Tables

Table 1: Mining Industry in Russia, Fiscal Regime Terms and Other Taxes 1

Table 2: Mining Industry in Russia, Severance Tax on Coal (RUB/ton), 2014 8

Table 3: Mining Industry in Russia, Severance Tax on Minerals (Other than Coal), 2014 8

Table 4: Mining Industry in Russia, Transportation Tax Rates (%), 2014 9

Table 5: Mining Industry in Russia, Depreciation Groups and Rates, 2014 10

Table 6: Mining Industry in Russia, Withholding Taxes (%), 2014 10

List of Figures

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