Slovak Finance Minister goes to war with Russia’s proposal to tax oil processing According to Reuters

(Reuters) – Slovak Finance Minister Igor Matovic said on Tuesday he would propose special tariffs on domestically processed Russian crude, clashing with a government coalition partner as he seek to increase revenue for the state’s anti-inflation measures.

The proposal comes as European Union states are also seeking agreement on a series of tougher sanctions against Russia for its invasion of Ukraine. That includes a possible oil embargo from which Slovakia has applied for a temporary waiver.

Slovakia is dependent on Russian crude, which comes via the Soviet-era Druzhba (Friendship) pipeline from Russia. The country’s only refinery is operated by Slovnaft, which is controlled by the Hungarian MOL.

The special tax could bring about 300 million euros ($316.29 million) in additional revenue to the state budget, Matovic said, which could cover some of the costs of state measures to ease the burden. due to rising domestic inflation.

He said a 30% tax should be paid from the difference between the price of crude oil from Russia and the price of oil from other suppliers.

Although Matovic said he expected full support for the proposal when he presented it to the government on Wednesday, the plan remained uncertain and one coalition partner criticized it. it.

Economy Minister Richard Sulik, whose SaS party opposes imposing higher taxes, said the plan could lead to higher fuel prices and he has threatened to veto the proposal, the TASR news agency reported. .

In February, the government sought to levy a tax on “excess profits” from nuclear power generation as it sought to help households cope with rising energy bills.

But it scrapped that tax after it reached an agreement to cap the price of household electricity with Slovenske Elektrarne, which operates the country’s two nuclear plants and is largely owned by Italy. Enel (BIT:) and the EPH group of Czech billionaire Daniel Kretinsky.

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