Russia’s government is planning to exempt private equity investors from tax on carried interest in an effort to boost funding for young companies, even as Western countries look at ways to increase taxes on buyout firms.

At a meeting last week, Russian Prime Minister Vladimir Putin agreed with a plan to cancel the 20% capital gains tax on the sale of shares in private companies, according to Russian business daily Vedomosti. Carried interest is the cut of a fund's profits to which private equity firms are often entitled.