Tuesday, October 17, 2006

Russia investigates Lukoil taxes

Russian authorities have demanded information on 398 licences held in the country by oil firm Lukoil.
The Russian Natural Resources Ministry said it had asked for the information as it believed taxes on some of the oilfield deals had not been paid.
The demand comes a week after Russian authorities threatened to withdraw 20 Lukoil exploration licences last week.
Analysts suggest the move may be part of a Kremlin campaign to regain control of the projects from Western companies.
In recent months environmental officials have piled the pressure on production sharing agreements Lukoil holds with international oil companies.
Grievances have been raised against Royal Dutch Shell's Sakhalin 2 project and the neighbouring Sakhalin 1 project led by Exxon Mobil.
Lukoil - which is 20% owned by US group Conoco Phillips - owns 406 licences to develop oil fields in Russia. The group said it hoped the issue would be "resolved soon".
Control battle?
However, Russian officials deny they are singling out any one firm. According to reports Yukos and TNK-BP have received similar warnings.
"We have requested the information on how Lukoil paid subsoil use and mineral resource taxes on these licences," environment ministry spokesman, Nikolai Gudkov, said.
"The logic is if the taxes are not paid or delayed, it means that there are problems with fulfilling licensing agreements."
But, while analysts claim the move could be an attempt to regain control of the projects, the demands are unlikely to lead to the same kind of battle that eventually led to the collapse of Yukos.
The oil firm was declared bankrupt in August after what critics claim was a three-year political campaign to dismantle the business.
Russian prosecutors had pursued the firm relentlessly for tax evasion.
Former boss Mikhail Khodorkovsky is serving an eight-year sentence after being convicted on multiple counts of fraud.

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