The Russian government reportedly objected to the windfall tax on the energy sector on the grounds that Panrusgáz operates with a profit margin of only 0.5% and is therefore unable to pay 1% of its turnover as a crisis tax, Népszabadság reports.

The company owners do not want to inject capital into Panrusgáz just to pay the tax, the newspaper adds.

As a temporary solution, Panrusgáz has given back its wholesale licence, which the company argues relieves it of the duty to pay the crisis tax. However, it is continuing its activity as a middleman between Gazprom and E.ON, Népszabadság writes.

The government might accept this situation, the report continues, as Panrusgáz is able to block gas imports from Russia.

Government spokeswoman Anna Nagy said authorities will look into which companies paid no crisis tax and why."

Source: Hungary Around the Clock

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