The Russian Ministry of Finance publicly denied plans to raise the mineral extraction tax (MET) on coal during the last quarter of 2023. Deputy Finance Minister Aleksey Sazanov told reporters that there had been a misinterpretation about the ministry’s position, emphasizing that no tax increase was being decided at that moment. The clarification followed media speculation about potential adjustments to the MET in October through December, with some reports suggesting a shift in how coal profits would be taxed in the near term.
Just before Kommersant’s publication, the ministry’s press service signaled that officials were weighing policy options for the coal sector, including a possible rise in the severance tax in the fourth quarter. The ministry stressed that the review formed part of ongoing monitoring of the coal industry’s financial performance and of the broader tax environment affecting energy producers. The message was clear: any changes would be driven by actual fiscal results and deliberations at the government level, not by a unilateral move from the ministry alone. (Cited: Ministry of Finance communications)
Officials explained that if the first quarter showed strong financial results, discussions would shift to adjusting the MET base rate in the fourth quarter rather than introducing new export duties. This distinction reflects a strategy to modify domestic taxation terms in line with profitability while avoiding measures that would directly undercut export competitiveness in the coal market. The aim is to preserve economic stability and encourage steady investment, rather than provoke abrupt shifts in export dynamics. (Cited: Ministry of Finance communications)
Sazanov again clarified that there had been a misunderstanding. He stated that no decision had been taken to collect more tax immediately and that any such matter would be resolved at the government level, with full participation of state authorities. The core point remained that coal companies had faced an increased MET in the first quarter, which, according to the current interpretation, could serve as a temporary adjustment rather than a permanent increase, with the government tasked to determine the final terms. (Cited: Ministry of Finance communications)
In his remarks, Sazanov indicated that any policy decision on MET would ultimately rest with the government and, by extension, the country’s leadership. The discussion points to a cautious approach: maintain fiscal stability, preserve the competitiveness of coal producers when possible, and hold final judgment until a broader fiscal review is completed. This stance aligns with a broader pattern where tax policy for the energy sector is calibrated to reflect macroeconomic conditions, industry health, and fiscal needs, all while avoiding abrupt shifts that could disrupt investment and production planning. (Cited: Ministry of Finance communications)
Analysts observe that the government’s method here favors transparency and phased decision-making. By signaling that actions would follow a formal review rather than an immediate mandate, officials aim to balance the state’s revenue interests with the realities of the coal market. The situation reinforces the idea that tax policy in Russia’s energy sector is not driven by hasty changes but by a structured process that weighs first-quarter results, industrial impact, and long-term fiscal objectives. In this framework, coal companies and investors are kept aware that any MET adjustment will come after careful assessment and official deliberation rather than as an expedient reaction to short-term fluctuations. (Cited: Ministry of Finance communications)