Russia to settle Sakhalin-I tax dispute with ExxonMobil subsidiary
MOSCOW, September 14 (RAPSI) – Russia’s government will sign an amicable agreement with Exxon Neftegas Limited controlled by the U.S. oil and gas corporation oil and gas company ExxonMobil in a tax dispute over the Sakhalin-I project.
The relevant decree was signed by Prime Minister Dmitry Medvedev and published on the official website of legal information.
Finance Minister Anton Siluanov was ordered to sign the settlement on behalf of the Russian Federation, the document reads.
Last week, President Vladimir Putin said that the Russian government negotiated with ExxonMobil about problematic points related to the Sakhalin-I project.
Exxon Neftegas Limited has lodged a lawsuit with the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) seeking tax refund which the company claims to have overpaid over the past seven years under the Sakhalin-I Production Sharing Agreement.
Reportedly, the agreement was signed in the mid-1990s when Russian legislation stipulated 35% profit tax rates that were reduced to 20% in 2009. Russian authorities claimed that provisions were not subject to change.