Russia's tax hike on the oil and gas industry will be destructive to a key piece of its economy

• Russia's taxes on its oil and gas industry will hamper long-term growth, a G7 analysis found.
• The tax mechanism was changed in April to help the government regain lost revenue.
• "It is definitely destructive to their industry," an official told the Financial Times.

Russia's energy producers, already battered by Western sanctions, may become further impeded from long-term growth as the Kremlin tries to squeeze more tax revenue from the sector.

That's according to an analysis by a member of the G7-led coalition that was seen by the Financial Times.