Another factor contributing to the projected decline in oil and gas revenue for Russia’s budget next year is a plan to remove an extra tax burden on Gazprom, which has long been a major source of cash for the government.

Since the invasion of Ukraine, the Russian gas giant has cut most of its pipeline exports to Europe, formerly its largest foreign market. The decision resulted in Gazprom’s first net loss since the start of the century in 2023. Still, the government imposed a windfall gas-output tax on the producer, expecting to receive an extra 50 billion rubles from the company every month between 2023 and 2025.

A plan now exists to ease that tax burden on Gazprom, the documents show. If adopted, the more lenient fiscal regime would curb Russia’s tax revenue from gas production by more than 30% from a year earlier to just over 1 trillion rubles in 2025, according to Bloomberg calculations based on the draft data.

However, the tax relief could boost to Gazprom’s financial results, which started to recover earlier this year. If Gazprom resumes dividend payouts, that could offset some of the decline in government revenue, since the state is the company’s largest shareholder.