Novatek Advances Most in Week on $717 Million Tax Saving Report

OAO Novatek rose the most in almost a week after Vedomosti reported Russia’s second-largest gas producer may save more than 20 billion rubles ($717 million) on paying a gas extraction tax, citing their own calculations.

The stock climbed 2.6 percent to 384 rubles at 1:36 p.m. in Moscow, its biggest gain since April 19.

The Russian government is discussing granting preferences on the tax payment to independent gas producers from next year, the Moscow-based newspaper said, citing unidentified government officials.

The news is “positive” for Novatek as it reduces the threat of a sharp tax increase, Alfa Bank analysts Pavel Sorokin and Alexander Bespalov wrote in an e-mailed report today.

To contact the reporter on this story: Jason Corcoran in Moscow at jcorcoran13@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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