ExxonMobil initiates arbitration proceedings against Russia over tax issues
MOSCOW, April 2 (RAPSI) – ExxonMobil, the world’s largest publicly traded international oil and gas company, served Russian authorities with a notice of arbitration over $500 million tax refund, Vedomosti newspaper reported on Thursday, citing Russian Minister of Energy Alexander Novak.
ExxonMobil is seeking tax refund which it claims to have overpaid over the past six years under the Sakhalin-I Production Sharing Agreement where the company holds a 30% interest and serves as an operator.
Russia expects the dispute would be settled, according to Vedomosti.
The agreement was signed in the mid-1990s when Russian legislation stipulated 35% profit tax rates that were reduced to 20% in 2009. Russian authorities reportedly claim that provisions are not subject to change.
ExxonMobil initiated proceedings because the statute of limitations was to expire on March 28, Vedomosti reported, citing a source familiar with the situation.