The Federal Law establishes a zero percent rate for tax on extraction of mineral resources applicable to production of oil in certain areas in the Black Sea and the Sea of Okhotsk, and those located north of the 65 degrees North latitude within the borders of the Yamal-Nenets Autonomous Area; of conditioned tin ores in areas located in the Far Eastern Federal District; and of natural gas and gas condensate in areas located on the Yamal peninsula in the Yamal-Nenets Autonomous Area used for producing liquefied natural gas.
The law also establishes a reduction in the base rate for tax on extraction of mineral resources applicable to oil production at deposits with initial recoverable reserves of up to five million tonnes of oil.