(Reuters) – Slovak Finance Minister Igor Matovic said on Tuesday he would suggest a specific tax on Russian crude processed in the nation, clashing with a authorities coalition partner as he seeks to raise budget profits for the state’s anti-inflation actions.

The proposal arrives as European Union states also seek arrangement on a tougher set of sanctions against Russia for its invasion of Ukraine. That contains a doable oil embargo from which Slovakia has sought a short term exemption.

Slovakia relies on Russian crude, coming via the Soviet-period Druzhba (Friendship) pipeline from Russia. The country’s sole refinery is operated by Slovnaft, which is managed by Hungary’s MOL.

Matovic reported the specific tax could deliver in about 300 million euros ($316.29 million) of further income to the state spending plan, which could address some expenses of point out steps to relieve the burden of surging inflation in the nation.

He mentioned the tax of 30% should really be compensated from the difference between the price tag of crude from Russia and that from other suppliers.

Although Matovic said he expected to get ample assistance for the proposal when he submits it to the govt on Wednesday, the plan is continue to unsure and just one coalition husband or wife has presently criticised it.

Economic system Minister Richard Sulik, whose SaS party has opposed increased taxes, said the prepare could guide to higher gasoline charges, and he has threatened to veto the proposal, TASR news company noted.

In February, the federal government had sought a tax on “surplus gains” from nuclear electrical power production as it seemed for methods to support households cope with soaring strength bills.

But it scrapped that tax immediately after reaching a offer to cap residence electric power selling prices with Slovenske Elektrarne, which operates the country’s two nuclear crops and is majority-owned by Italy’s Enel and Czech billionaire Daniel Kretinsky’s EPH group.

($1 = .9485 euro)

(Reporting by Robert Muller in Prague Enhancing by Catherine Evans and Matthew Lewis)


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