- Russian lawmakers are poised to approve a temporary windfall tax on its state-run gas giant.
- Gazprom would pay an extra 1.25 billion rubles, roughly $22 billion, from September to November.
- The legislation comes as natural gas prices soar as Western customers turn away from Russian supplies.
Russian lawmakers moved closer to approving a one-time windfall tax on its state-run energy giant as prices for natural gas have soared.
A mineral extraction tax cleared the lower chamber of Russia's parliament but still needs approval from the upper chamber. It would bring in an additional 1.25 trillion rubles from September to November, or about $22 billion.
The legislation comes as natural gas prices soar across the globe in response to Russia's invasion of Ukraine. European gas prices have skyrocketed in the five months since the outbreak of war, spurring a potential energy crisis as the EU moves to secure alternative supplies to wean off Russian dependence.
But even as Western and European sanctions take aim at Moscow's exports, Gazprom is still enjoying exceptional profits from the rise in prices. Russia is earning more now than it did before its invasion of Ukraine.
The windfall tax, if fully approved, will re-circulate proceeds from Gazprom to the government as opposed to shareholders. The Kremlin is the Gazprom's largest shareholder.
Meanwhile, the Kremlin is simultaneously trying to weaken its native ruble from a mid-year surge that has made its exports less competitive globally.