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Russia’s President Vladimir Putin OK’d a tax cut Monday on oil company profits.

He signed into law a bill that will also reduce taxes on mineral extraction and export duties.

The move is aimed to stimulate exploration of offshore fields thought to hold more than 100 billion tons of hydrocarbons.

Russia is the world’s biggest energy producer, now pumping nearly 10.5 million barrels per day.

The Offshore Hydrocarbons Stimulus Bill applies to investment projects in offshore oil and gas production within Russia’s internal marine waters, territorial waters, continental shelf, or in the Russian sector in the Caspian Sea.

It will set as zero VAT on the sale and transportation of hydrocarbon raw materials and derivatives, among other provisions.

The new tax regime will be effective from next year, according to reports.