"From January 1, 2009, the mineral tax was cut and companies received the right to use more effectively the speeded amortization mechanism. As a result, the tax burden on the sector was eased by some 500 billion rubles," Vladimir Putin said.
He also said he had backed a proposal to temporarily reduce the export duty on oil extracted from newly developed oil deposits in East Siberia.
"With new fields in East Siberia being brought on stream, temporary cuts in export duties on oil produced there have been proposed," Putin told a meeting on the development of the domestic oil sector.
The Russian energy minister said a decision on temporarily abolishing the mineral extraction tax for new oil fields in Siberia could be ready in the next two months.
Sergei Shmatko said the tax break should last for three years.
He also said Russia's Energy Ministry will propose a concept for establishing a strategic oil reserve in the country in the next two to three months.
"We will submit a revised concept to the government within the next two to three months," he said.
The minister said earlier on Thursday oil production in Russia would decline to 450 million metric tons by 2013. Oil output in 2008 was 488 million metric tons.
"The sector is in stagnation," Shmatko said. "By 2013, oil output in Russia will decline to 450 million metric tons."
He said the forecast was based on data provided by oil companies.
The minister has proposed that taxes levied on new oil and natural gas fields be linked to their performance.
"We propose that new deposits be taxed depending on their profitability," he said.
Russian oil firms have proposed replacing the mineral extraction tax and oil export duty with an excess profits tax.
