Russia’s power sector faces a potential excess profits tax and its impact on the budget
The potential contribution from the Russian electricity industry to the budget through an excess profits tax could reach up to 25 billion rubles, according to a major business daily’s calculations. The largest payments are expected from Rosenergoatom, Inter RAO, and Rosseti, reflecting how the sector’s profitability would translate into public finance under the new levy.
The report notes that some companies would declare the full taxable base for income tax, while others would apply estimated figures, depending on how the tax base compares to reported profits. The approach varies, with some firms pointing to actual pre-tax profits and taxes paid as the benchmark for the levy, while others may calculate from broader indicators described in the coverage.
Based on the calculations, Rosenergoatom could shoulder about 8 to 10 billion rubles in payments, marking it as the single largest contributor. The Inter RAO group is projected to contribute around 4 billion rubles, with PJSC Inter reportedly able to pay roughly 1.3 billion rubles to RAO. Other entities within the Inter RAO network, such as JSC Inter RAO Power Plants and Mosenergosbyt, may contribute about 0.4 billion rubles. Gazprom Energoholding and its subsidiaries—Mosenergo, OGK-2, TGK-1, and MOEK—could collectively add between 1.3 and 1.7 billion rubles to the total. The reported dynamics show a broad spread of potential payments across the major players in the sector.
Sources familiar with the situation indicate that the government is considering how these seizures could affect ongoing investments in upgrading aging thermal power plants and in expanding the power grid for the eastern regions. Those modernization efforts are part of a broader strategy to secure energy reliability while adapting to shifting economic conditions.
In late June, lawmakers in the State Duma approved, at first reading, a bill introducing a one-time tax on the excess profits of large corporations in Russia. The measure targets firms with average profits above a defined threshold, excluding taxes for 2021–2022. The stated aim of the tax is to boost federal budget revenues amid the sanctions environment, reinforcing the government’s revenue diversification for national economic stability.
Earlier discussions also touched on how oil will continue to influence global energy markets, underscoring the significance of energy pricing and policy choices for the broader economy. The evolving fiscal approach reflects a broader trend in state revenue strategies as conditions in the energy sector unfold.