WASHINGTON, March 30 (UPI) -- The United States has warned Russia of excessive government involvement in the country's oil and gas industry. According to a statement made by U.S. Envoy to Russia Alexander Vershbow at a conference organized by the American Chamber of Commerce in Moscow on Mar. 29, excessive government involvement in the Russian oil and gas sector may decrease foreign investments. Vershbow said: "The Yukos story, the forthcoming merger between Gazprom and Rosneft and the presence of government officials on the boards of directors of large companies indicate that the Kremlin intends to tighten its control over the oil and gas sector. Each country can manage its oil and gas resources in its own way, but excessive government restrictions may produce a big negative effect and decrease investments." Vershbow noted that the oil pipeline from western Siberia to the Barents Sea coast could increase U.S.-Russian cooperation in the energy arena and emphasized that the U.S. has an interest in a strong and democratic Russia. Vershbow added, "A strong and democratic Russia will be a guarantor of regional stability and buy more American goods."
Russia is currently assisting India to construct a nuclear power plant. Russian United Heavy Machinery (OMZ) has finished loading the 14th batch of equipment for the Indian Kudankulam nuclear power plant. OMZ shipped approximately 729 tons of equipment, which is worth more than $12 million from the St. Petersburg port. The company expects to ship the next batch of equipment sometime in April. OMZ and the nuclear power plant construction company Atomstroiexport signed an agreement in 2002 to supply equipment for two Indian nuclear power plant reactors. Under the agreement, OMZ will supply 21,000 tons of equipment worth more than $300 million to the Indian atomic energy corporation; the company supplied more than 9,300 tons thus far. OMZ expects to complete equipment supplies to Kudankulam in 2006.
Commonwealth of Independent States Collective Peacekeeping Force Commander Lieutenant-General Alexander Yevteyev said on Mar. 29 that the Collective Peacekeeping Forces in the Georgian-Abkhaz conflict zone intend to create two new provisional observation posts in an effort to ensure safety of repairs at the Inguri hydropower plant in Georgia. Yevteyev said: "We will place two observation posts near the Inguri hydro power plant for three months at the request of the plant's management. Our mandate permits this, and we satisfied the requests of the Inguri power plant management." Yevteyev added that his forces currently hold 15 posts in the northern security zone and 11 in the southern security zone. Russian peacekeepers have been serving in the conflict zone under the CIS aegis since 1994.
TNK-BP President Robert Dudley announced at the annual U.S. Chamber of Commerce conference on Mar. 29 that the company plans to invest $1.8 billion in Russian for 2005. Dudley also said that TNK-BP expects pay $10 billion in taxes; in 2004, the company paid $6.5 billion. The company's oil production increased 13 percent in 2004; TNK-BP expects oil production to increase by 7 percent in 2005. Dudley noted that he believes that in the mid-term perspective oil prices may drop to about $30 dollars; oil prices however are unlikely to drop to a $20 mark in the near future.
Fire broke out at Yuganskneftegaz's Kinyaminskoye oilfield -- located in Russia's Khanty-Mansi autonomous region -- bringing five oil wells to a standstill on Mar. 29. Officials from the regional civil defense and emergencies directorate said: "a fire in the electric equipment of the well cluster began as a result of a short circuit on Mar. 28." Authorities put out the fire the same day and four wells were brought back online. A special commission has been established to investigate the incident.
Authorities detained 28 vehicles loaded with stolen oil products in Chechnya on Mar. 29; law enforcement officials seized more than 80 tons of fuel and lubricants. Oil thieves were armed and dangerous as they stole several cars to make their getaway. Chechen Traffic Police Chief Lomali Kazimagomadov said that Chechnya has implemented a special operation designed to discover stolen vehicles carrying illegal oil.
Closing oil prices, Mar. 30, 3 p.m. London
Brent crude oil: $52.65
West Texas intermediate crude oil: $54.18
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