Russia may give gas export monopoly Gazprom and other firms tax breaks to tap new fields in East Siberia and the Arctic Yamal peninsula following similar breaks for oil producers, an official said.
"Both Yamal and East Siberia are being discussed ... It could become a good spur for both Gazprom and independent producers to increase production," Deputy Economy Minister Kirill Androsov told reporters.
He said a decision could be taken in the fourth quarter of 2007 or the first quarter of next year.
Russia counts on East Siberia, Yamal and the Arctic shelf as future areas of growth in oil and gas production which will allow it to compensate flagging production in West Siberia and have enough crude to fill new pipelines to Asia.
Androsov also said Gazprom had pledged to the government not to use cash when merging its power assets with coal and power assets of energy major SUEK.
"We have received pledges from Gazprom that the deal would not involve cash injections. The management believes it can be done that way," he said.
Russian media reported earlier this week the two firms have postponed the merger due to asset valuation differences.
Russia's power sector is undergoing a major reform, under which Gazprom will secure controlling stakes in power generating firms OGK-2 and OGK-6 and minority stakes in smaller power generators TGK-11, TGK-12 and TGK-13.
As a result of the same reform, SUEK will get controlling stakes in TGK-12 and TGK-13.
Gazprom's assets are worth around $4.8 billion, while SUEK's assets are currently estimated at $6.3 billion as it plans to contribute coal assets to the new venture alongside its power stakes.
Russian government officials remain divided over the planned merger as some say it could be damaging for competition and derail power-sector reform.
Androsov said the government was against Gazprom injecting cash as it would further increase its heavy borrowings.
Gazprom is seeking to acquire 50 percent plus one share in the joint venture, while SUEK would get the rest.
But if the firms were to follow Androsov's request Gazprom would have to cut its stake in the new firm or add some assets such as its stake in Moscow power utility Mosenergo, which it is not planning to contribute so far.
Another option would be for SUEK to contribute fewer assets.
(Reuters)