December
2000
Russia
Russia holds the world's largest natural gas
reserves, the 2nd largest coal reserves, and
the 8th largest oil reserves. Russia also is
the world's largest exporter of natural gas
and 2nd largest energy consumer.
Information contained in this report is the
best available as of December 2000 and is subject
to change.
GENERAL BACKGROUND
Only two years since Russia's August 1998 financial
crisis, Russia's economy has bounced back,
and now appears to be in the best shape since
the collapse of the Soviet Union. The ruble's
steep depreciation in the aftermath of the
1998 crisis increased the competitiveness
of Russian exports, and a sharp rise in oil
prices over the past 18 months has helped
significantly as well.
Russia's GDP, which rose 3.2% in 1999, grew
7.5% during the first half of 2000 compared
to the same period in 1999, and industrial
output was up 10.3%. High world oil prices
prompted Russia's oil industry to boost production,
and surging oil revenues in turn stimulated
increases in other industrial sectors. Increased
oil revenues helped Russian pay down its foreign
debt and contributed to the country's current
account surplus in 1999 and 2000. Meanwhile,
inflation has slowed from 36.5% in 1999 to
an expected 20% in 2000. Russians elected Vladimir
Putin as president in March 2000, replacing
Boris Yeltsin. Putin has made a crackdown on
corruption the focal point of his presidency
thus far, seeking to erode the power of the
oligarchs and further restructure and liberalize
Russia's economy.
In the energy sector, Putin's government has
increased export taxes on the Russian oil sector
to take advantage of relatively high world
oil prices, and subjected Gazprom and UES,
the Russian natural gas and electricity monopolies,
respectively, to significant restructuring
efforts. In addition, as Russia negotiates
with the European Union (EU) on a long-term
energy supply contract, it has threatened to
build a new
gas pipeline to the West that will bypass Ukraine, which
Russia says has been siphoning off its gas
and also has been delinquent
in paying its energy debts to Russia.
OIL
Russia's total oil production fell nearly 23%
from 1992 to 1998 after Soviet Union's breakup,
but has made a comeback in 1999 and 2000. From
7.86 million barrels per day (MMBD) in 1992,
production fell to 6.07 MMBD in 1998, reflecting
a decline in drilling and capital investment
as domestic consumption dissipated. Higher world
oil prices since March 1999 helped stimulate
a jump in Russia's oil output, to 6.30 MMBD in
1999 and a projected 6.62 MMBD in 2000.
Russia has an
estimated 49-55 billion barrels of oil in proven
reserves, but aging equipment and poorly developed
fields are making it difficult to develop these
reserves. The depletion of existing oilfields,
deterioration in transport infrastructure,
and an acute shortage of investment--aggravated
by the country's August 1998 financial crisis--may
lead to further declines in oil production
unless these trends can be reversed.
Oil companies are undertaking new exploratory
drilling. In addition to further development
of Russia's Siberian region, several oil companies
have joined forces to explore
for oil and gas in the Arctic. According
to Aleksandr Gavrin, Russia's fuel and energy
minister, the country's future oil production
will be determined mainly by world oil prices,
the tax structure for oil production and refining,
the application of modern technology at deposits
with exhausted and low yield reserves, and
new oil deposits in Eastern Siberia. Large
amounts of capital, mostly from foreign investors,
will be needed to develop new fields and to
extend the life of existing oilfields, but
analysts have argued that proposed changes
to Russia's legal framework for long-term investment
in the energy sector will introduce potential
conflicts of interest for domestic oil companies
and may do little to simplify the process.
Privatization
Russia initiated a two-step privatization process
in 1993. The first phase, which involved
organizing state-owned enterprises as joint-stock
companies, ended in 1994 and resulted in
the establishment of several vertically-integrated
oil companies. The second phase, which has
been ongoing since 1995, involves the auctioning
off of large chunks of government shares
in these companies. In 1999, the government
auctioned 9% of Lukoil for $200 million (plus
$240 million in investment commitment) and
48.7% of Tyumen Oil Company (TNK) for $90
million (plus $184 million in investment
commitment).
The sale of an 85% federal stake in the Orenburg
Oil Company (Onako) in September 2000 fetched
$1.08 billion, more than double the asking
price and a record for a Russian oil privatisation.
EvroTek, an affiliate of TNK, placed the winning
bid. The sale has helped to demonstrate that
oil privatization can be profitable for the
Russian government. The successful sale of
Onako could signal a new phase in Russia's
privatization, and could pave the way for the
sale of Rosneft and Slavneft, the last two
large state oil companies. The sale of Rosneft
flopped in 1998, partly due to the country's
financial crisis. Russia's Federal Property
Fund says 19.64% of Slavneft and 25.5% of Rosneft
will be auctioned off in 2001.
Oil Exports
In October 2000, the EU agreed to help Russia
develop its oil and gas reserves in return
for a long-term energy supply commitment.
This could help boost Russia's oil
exports. Currently, Russia provides about
20% of Europe's natural gas needs and 16%
of its oil supplies, but EU officials say
they hope the energy pact will soon lead
to a doubling of imports from Russia.
Russia's financial crisis in August 1998 weakened
the ruble and made the country's exports more
competitive, and higher prices on the world
oil market in the second half of 1999 and throughout
2000 have led to a boom in Russian oil export
revenues. Russian oil companies have been rushing
to export their oil (resulting in a windfall
of hard currency coming into the country) to
such an extent that Russian officials have
set export quotas in order to maintain an adequate
domestic supply of oil. In 1999, Russian net
oil exports totaled 3.96 MMBD, and in 2000
the country's net exports are projected to
increase to 4.16 MMBD. In addition to export
quotas and higher taxes levied on oil exports,
another problem facing exporters is the lack
of export
routes. Russia is maneuvering to become
a major player in the exploration,
development, and export of oil from the Caspian
Sea.
Oil Pipeline
Transneft is the state-owned company responsible
for Russia's extensive oil pipeline system.
Many of these pipelines are in a state of
disrepair, with Fuel and Energy Ministry
figures indicating that almost 5% of crude
oil produced in Russia is lost through pipeline
leaks. Transneft lacks the funding to repair
or upgrade many of these malfunctioning pipes,
and the company's focus instead has been
on building new pipelines. In addition to
those in the Caspian
Sea Region, Russia has a number of new
oil and gas pipelines planned or already
under construction.
Downstream
Refinery capacity in Russia outstrips demand
for refined products by nearly a 2-to-1 margin.
Russia's refineries possess refining capacity
of 6.6 MMBD, while demand is within the 2.8-3.4
million bb/d range, leaving many refineries
significantly underutilized. The government
has attempted to ensure deliveries to refineries
by making access to export pipelines for
oil producers conditional on meeting their
delivery targets to refineries. As oil prices
have risen, refineries are receiving more
deliveries, but many are still operating
well below capacity.
Many Russian refineries are inefficient, aging,
and in need of modernization. While financial
constraints prevent most refineries from undertaking
modernization to increase efficiency, the 359,000-bbl/d
Yaroslavl refinery is undergoing a $416-million
upgrade (to be completed by 2002) while the
NORSI-Oil is undergoing a $350-million upgrade
on its 438,000-bbl/d refinery (to be completed
by 2005).
NATURAL GAS
Natural gas is the predominant fuel in Russia,
accounting for nearly half of the country's domestic
consumption. With 1,700 trillion cubic feet (Tcf)
in proven gas reserves, Russia has more than
enough for itself, allowing it to export significant
amounts of gas. In 1998, Russia produced 20.9
Tcf of gas and consumed only 13.8 Tcf, with the
excess 7.1 Tcf exported, making Russia the world's
largest gas exporter.
Although the country's natural gas production
has dipped only slightly (8% from 1992 to 1999)
during the transition to democracy, low investment
has raised concerns about future production
levels: production in the established West
Siberian fields that account for 76% of Russian
gas output is declining, while the planned
development of new fields continues to be delayed
as a result of lack of investment resources.
Moreover, the Russian government's authorities'
determination to keep domestic gas prices artificially
low deters the production of associated gas
by oil companies and forces Gazprom, the country's
natural gas monopoly, to look to export
markets for hard-currency earnings.
Gazprom, which is 38% government-owned, dominates
Russia's gas sector. Gazprom controls more
than 90% of Russia's gas production, runs the
country's 90,000-mile gas pipeline grid and
43 compressor stations, operates trading houses
and marketing joint ventures in many European
countries, and holds one-fifth of the world's
natural gas reserves. In addition, Gazprom
is Russia's largest earner of hard currency,
and its tax payments account for around 25%
of federal tax revenues.
As a result of the approximately $2.7 billion
debt of domestic gas consumers, Gazprom has
been unable to meet all of its tax payments.
The company continues to be hurt by low domestic
prices, which are running at approximately
11% of export prices, and chronic non-payments.
Gazprom has reduced gas supplies to the country's
electricity monopoly, Unified Energy Systems
(UES), as a result of such non-payment.
Restructuring the Gas Sector
Russian is attempting to liberalize its gas
industry by ending Gazprom's monopoly position.
On November 9, 2000, the government ordered
Gazprom to allow other companies to use up
to 15% of its pipeline capacity. Most oil
companies, however, produce a heavier form
of gas that requires special refining before
it can be transported in the pipeline. With
low domestic gas prices and low levels of
consumer payments, however, companies may
decide it is not worth the cost.
Gazprom is under fire for its relationship
with Itera, which has rapidly become Russia's
second-largest gas exporter. Minority shareholders
in Gazprom have sent the government a detailed
critique of Gazprom's ties to Itera, arguing
that Itera has been allowed to obtain valuable
Gazprom assets at discounted prices. The European
Bank for Reconstruction and Development is
demanding clarification of the Gazprom-Itera
relationship before it agrees to give Gazprom
a $250-million loan. For its part, Itera, which
has focused on gas exports, recently began
its own gas production and signed a gas supply
contract for the Sverdlovsk region, edging
into the domestic gas market for the first
time.
Gas Exports
With low domestic prices, Russia's gas industry
is heavily dependent upon exports.
In 1999, Russia's gas exports outside the
former Soviet Union were up by over 200 billion
cubic feet (Bcf), to 4.5 Tcf per year, with
exports to Western Europe increasing 350
Bcf. Gazprom supplies Europe with 25% of
its natural gas, a share that Russia hopes
to increase. Russia's
dispute with Ukraine over gas transit has
prompted Gazprom to propose building a new
pipeline in order to supply its European
customers.
The proposed Ukraine bypass pipeline is just
one of several new
gas pipelines that Russia has in the works
to increase its export capacity. The Blue
Stream pipeline, which is currently under
construction, aims to supply 564 Bcf of natural
gas to Turkey when
it is completed, is the centerpiece of Russia's
export diversification strategy. In order to
guarantee sufficient gas for the Blue Stream
pipeline, Russia has announced plans to import
additional gas from Turkmenistan,
making Russia a key player in the transit
of Caspian Sea region natural gas.
COAL
Russia's coal sector continues to undergo painful
downsizing and restructuring. Although coal
accounted for roughly 15% of Russia's domestic
energy supply in 1999, coal consumption has
trended downward since the breakup of the
Soviet Union. In 1992, Russia consumed 374.6
million short tons (Mmst) of coal; by 1998,
consumption had fallen to only 262.6 Mmst.
Russia remains the world's sixth largest
coal producer, but production has slide sharply
since 1992. In that year, Russia produced
405.9 Mmst of coal, while in 1998, it produced
only 272.6 Mmst -- a 33% decline.
Years of poor management of the Soviet sector
in the Soviet period, combined with a sharp
decline in demand for coal during during the
early 1990s, significantly undermined the sector's
economic viability, and by 1993, government
subsidies to the coal sector became unsustainably
high, exceeding 1% of the country's GDP, according
to the World Bank.
Russia initiated a comprehensive restructuring
of the coal sector in the mid-1990s, and with
$800 million in financing provided by the World
Bank, the government is in the midst of the
second phase of the restructuring program.
This phase calls for the closure of all unprofitable
mines, the complete liquidation of the national
coal company, RosUgol, and a substantially
reduced subsidy level.
In addition, the plan includes funding for:
1) an adequate social safety net to affected
workers, their families, and communities; 2)
protection of Russia's forests from further
environmental damage from coal mining; and
3) maintenance and upgrading of more profitable
mines. Already, restructuring is showing some
results: after years of decline, Russia's drop
in coal production is leveling off, the level
of subsidies is more manageable, and nearly
half of the country's coal now comes from privately-owned
mines.
However, further restructuring is necessary,
and implementation remains slow due to labor
unrest and strikes in the coal industry, and
even efficient mines in Russia are not without
problems. Payment arrears have made it nearly
impossible for mines to pay workers and purchase
needed supplies and equipment. The country's
financial crisis of August 1998 exacerbated
these problems, and the coal sector is still
feeling the effects. Russia's coal sector is
likely to undergo further painful changes in
coming years in its attempt to become more
efficient and profitable.
ELECTRICITY
Russia's power generation and consumption have
followed steady patterns of decline since the
breakup of the Soviet Union. Power generation
in Russia has dropped nearly 20% since 1992,
from 964 billion kilowatt-hours (Bkwh) to 772
Bkwh, while electricity consumption has followed
a similar downward trend, falling from 880 Bkwh
in 1992 to only 703 Bkwh in 1998.
Russia has over 440 thermal and hydroelectric
power stations, with a production capacity
of 132 gigawatts (GW) and 44 GW, respectively.
Total electric generation capacity in 1998
was 206 GW, down from 213 GW in 1992 but still
enough production potential to supply Russian
producers and the public with electricity,
as well as meet the country's obligation of
export contracts.
However, the economic recovery since the August
1998 financial crisis has led to a slight increase
in the country's electricity consumption, taxing
the country's ability to meet this demand since
much of Russia's generating capacity is inefficient
and obsolete by Western standards. A lack of
investment in new generating and distribution
capacity may mean that Russia could face power
shortages within five years. A lack of fuel
supplies at power stations has already led
to periodic power outages, including severe
power outages in the Russian Far East in the
fall of 2000.
Russia's electricity sector is controlled
by UES, which is 52% owned by the Russian government.
UES, headed by former privatization minister
Anatoly Chubais, controls 70% of the country's
distribution system and oversees Russia's 72
regional electricity companies. Chubais' main
priorities for UES include the abolition of
payments arrears by customers, the introduction
of competition in the production and wholesale
electricity markets, and the pursuit of more
rational pricing policies.
Russia's
electricity sector is in dire need of reform.
Without significant investments and equipment
upgrades, regional power shortages likely
will become more widespread: in 1999 it was
estimated that 49% of the power sector's
fixed assets were past their intended productive
lives. Russian officials estimate that the
country will need $6 billion-$11 billion
annually from 2001 to 2005 to carry out maintenance
and expansion plans, but UES has resources
to invest just $1 billion per year. Efforts
to restructure the sector to improve efficiency
and attract much-needed capital have consistently
failed.
Meanwhile, Gazprom continues to reduce gas
supplies to the electricity sector. Natural
gas is the main fuel used at Russian power
stations, but supplies to power stations have
shrunk by 50 billion cubic meters (Bcm) (1.77
Tcf) in the past 10 years, to 137 Bcm (4.84
Tcf) in 1999. In the fall of 2000, Gazprom
notified UES that it would provide just 95
Bcm (3.35 Tcf) of gas for energy companies
in 2001.
Increased industrial demand for electricity
also has forced power stations to operate at
higher capacity, straining power companies'
abilitiy to procure fuel supplies. At the same
time, UES has begun to focus on electricity
exports in order to boost its payments
in hard currency and increase its cash flow.
Nuclear
Russia has nine operating nuclear plants and
a total installed capacity of 21 GW, accounting
for 13% of the country's total generating electricity
capacity. In 1998, the country's nuclear power
generation amounted to nearly 100 billion kilowatt-hours,
and Russia plans to increase its use of nuclear
power to meet its domestic electricity needs
as it exports more natural gas to the West.
However, by 2001, four of Russia's 29 nuclear
plants will be 30 years or older, the maximum
prescribed service life for a reactor, and
by 2007, as many as 10 Soviet-era reactors
will come to the end of their prescribed service
life. Extending that service life has become
a priority, but safety issues are an ongoing
concern, especially with regard to the 16 relatively
old reactors of the RBMK design used at Chernobyl.
Older RBMK units at Kursk and St. Petersburg
are to be overhauled and equipped with stopgap
safety improvements to prolong their lives
for another three decades.
In addition, Minatom, the government agency
responsible for overseeing the country's nuclear
power plants, has complained that UES is not
paying nuclear power plants in cash. UES announced
plans to pay nuclear power plants only 65%
in cash for electricity supplies in 2000, despite
claims by Minatom that nuclear power plants
need to receive no less than 70% of payments
in cash to cover the cost of safe electricity
production alone.
The lack of funding has forced Russia to focus
on completing nuclear generating units already
under construction rather than building new
ones. The 1,000-MW Rostov 1 reactor is scheduled
to be completed by end-2000, while the 1,000-MW
Kalinin 3 and the 1,000-MW Kursk 5 reactors
are nearly operational.
In October 2000, Russia announced it will
market nuclear power plants to countries in
Asia and Africa. The first of such plants,
a $1.2-billion project for two 1,000-MW reactors,
has been sold to India to be installed
near the southern city of Chennai by 2008.
Russia also reportedly is negotiating a similar
deal with Iran.
According to the International Atomic Energy
Agency, reactors of Russian design would not
be licensable in Western countries becuase
they do not have all of the safety features
that are mandatory, such as a containment dome.
ENVIRONMENT
After years of neglect under the Soviet Union,
the environment has
become a pertinent issue in today's Russia.
Soviet policies that encouraged rapid industrialization
and development left a legacy of air
pollution and nuclear
waste that Russia is struggling to clean
up. Although environmental awareness in Russia
is rising, the cost of environmental remediation
remains high.
Reduced industrial production (and economic
activity in general) in recent years has resulted
in less energy
consumption and a drop in Russia's carbon
emissions. However, energy
and carbon intensities in Russia remain
high, and while per
capita carbon emissions have fallen over
the last five years, Russia will need to pursue
more sustainable environmental policies in
the 21st
century in order to maintain this trend.
Although it has abundant natural energy resources,
Russia will need to look increasingly toward
renewable energy options and cleaner environmental
technologies to preserve its natural wonders.
COUNTRY OVERVIEW
President: Vladimir Putin (since May 7,
2000; acting President since December 31, 1999)
Prime Minister: Mikhail Kasyanov
Independence: August 24, 1991 (from Soviet
Union). National holiday: Independence Day, June
12, 1990
Population (7/00E): 146 million
Location/Size: Eurasia/6,592,850 sq. mi.,
slightly more than 1.8 times the size of the
United States
Major Cities: Moscow, St. Petersburg,
Yekaterinburg, Irkutsk, Murmansk, Yakutsk, Vladivostok
Languages: Russian, others
Ethnic Groups: Russian (81.5%), Tatar
(3.8%), Ukrainian (3%), and 100 other nationalities
(11.7%)
Religions: Russian Orthodox, Muslim, other
ECONOMIC OVERVIEW
Currency: Ruble
Market Exchange Rate (12/7/00): $1 = 27.95
rubles
Gross Domestic Product, or GDP (1999E): $593.4
billion; (2000E): $623.1 billion
Real (adjusted for inflation) GDP Growth Rate
(1999E): 3.2%; (2000E): 5.0%; (2001E): 4.2%
Inflation Rate (1999E): 36.5%; (2000E): 20.0%; (2001E): 14.0%
Current Account Balance (1999E): $13.0
billion; (2000E): $11.2 billion
Merchandise Exports (1999E): $75.4 billion; (2000E): $87
billion
Merchandise Imports (1999E): $48.2 billion; (2000E): $36.3
billion
Major Exports: Petroleum and petroleum
products, natural gas, wood and wood products,
metals, chemicals, various civilian and military
manufactures
Major Imports: Machinery and equipment,
consumer goods, medicines, meat, grain, sugar,
semifinished metal products
Major Trading Partners: Belarus, Germany,
Ukraine, United States, Kazakhstan
Monetary Reserves (gold and hard currency)
(1999E): $11.5 billion; (2000E): $24.1
billion
Unemployment Rate (199E):12.4%; (2000E): 10.9%
Foreign Debt (1999E): $166.2 billion; (2000E): $158
billion
ENERGY OVERVIEW
Minister of Fuel and Energy: Aleksandr
Sergeyevich Gavrin
Minster of Atomic Energy: Yevgeniy Olegovich
Adamov
Proven Oil Reserves (1/1/00E): 49-55 billion
barrels (estimates vary)
Oil Production (2000E): 6.6 million bb/d
(of which 6.4 MMBD is crude)
Oil Consumption (2000E): 2.34 million
bbl/d
Net Oil Exports (2000E): 4.2 million bbl/d
(of which 3.8 million bbl/d go outside the FSU)
Major Oil Customers: Europe, CIS
Crude Refining Capacity (1/1/00E): 6.6
million bbl/d
Natural Gas Reserves (1/1/00E): 1,700
trillion cubic feet (Tcf)
Natural Gas Production (1999E): 20.9 Tcf
Natural Gas Consumption (1999E): 13.8
Tcf
Net Natural Gas Exports (1999E): 7.1 Tcf
Coal Reserves (1/1/99E): 173 billion short
tons
Coal Production (1998E): 272.5 million
short tons (Mmst)
Coal Consumption (1998E): 262.6 Mmst
Electricity Production (1998E): 772 billion
kilowatt-hours
Electric Production Capacity (1998E): 206
gigawatts (68% thermal, 21% hydro, 10% nuclear)
ENVIRONMENTAL OVERVIEW
Chairman, State Committee for Environmental
Protection: Viktor Ivanovich Danilov-Danil'yan
Minister of Natural Resources: Boris Aleksandrovich
Yatskevich
Total Energy Consumption (1999E): 26.0
quadrillion Btu* (6.8%) of world total energy
consumption)
Energy-Related Carbon Emissions (1999E): 400.1
million metric tons of carbon (6.5% of world
carbon emissions)
Per Capita Energy Consumption (1999E): 176.7
million Btu (vs. U.S. value of 355.8 million
Btu)
Per Capita Carbon Emissions (1999E): 2.7
metric tons of carbon (vs. U.S. value of 5.5
metric tons of carbon)
Energy Intensity (1999E): 72,132 Btu/$1990
(vs U.S. value of 12,638 Btu/$1990)**
Carbon Intensity (1999E): 1.1 metric tons
of carbon/thousand $1990 (vs U.S. value of 0.19
metric tons/thousand $1990)**
Sectoral Share of Energy Consumption (1998E): Industrial
(64.7%), Residential (17.7%), Transportation
(17.6%), Commercial (0.0%)
Sectoral Share of Carbon Emissions (1998E): Industrial
(64.3%), Transportation (18.7%), Residential
(17.0%), Commercial (0.0%)
Fuel Share of Energy Consumption (1999E): Natural
Gas (54.3%), Oil (19.3%), Coal (16.0%)
Fuel Share of Carbon Emissions (1999E): Natural
Gas (50.8%), Coal (26.2%), Oil (22.9%)
Renewable Energy Consumption (1998E): 2,137
trillion Btu* (14% decrease from 1997)
Number of People per Motor Vehicle (1998): 6.5
(vs. U.S. value of 1.3)
Status in Climate Change Negotiations: Annex
I country under the United Nations Framework
Convention on Climate Change (ratified December
28th, 1994). Under the negotiated Kyoto Protocol
(signed on March 11th, 1999 - not yet ratified),
Russia has agreed to stabilize greenhouse gases
at 1990 levels by the 2008-2012 commitment period.
Major Environmental Issues: air pollution
from heavy industry, emissions of coal-fired
electric plants, and transportation in major
cities; industrial, municipal, and agricultural
pollution of inland waterways and sea coasts;
deforestation; soil erosion; soil contamination
from improper application of agricultural chemicals;
scattered areas of sometimes intense radioactive
contamination; ground water contamination from
toxic waste.
Major International Environmental Agreements: A
party to Conventions on Air Pollution, Air Pollution-Nitrogen
Oxides, Air Pollution-Sulphur 85, Antarctic-Environmental
Protocol, Antarctic Treaty, Biodiversity, Climate
Change, Endangered Species, Environmental Modification,
Hazardous Wastes, Law of the Sea, Marine Dumping,
Nuclear Test Ban, Ozone Layer Protection, Ship
Pollution, Tropical Timber 83, Wetlands and Whaling. Has
signed, but not ratified, Air Pollution-Sulphur
94.
* The total energy consumption statistic includes
petroleum, dry natural gas, coal, net hydro,
nuclear, geothermal, solar and wind electric
power. The renewable energy consumption statistic
is based on International Energy Agency (IEA)
data and includes hydropower, solar, wind,
tide, geothermal, solid biomass and animal
products, biomass gas and liquids, industrial
and municipal wastes. Sectoral shares of energy
consumption and carbon emissions are also based
on IEA data.
**GDP based on EIA International Energy Annual
1998
ENERGY INDUSTRY
Organization: Russia's energy sector is
overseen by the Ministry of Fuel and Energy,
except for nuclear power, which is administered
by the Ministry of Atomic Energy (Minatom). Russia's
Oil Sector is dominated by large joint-stock
companies, although smaller independent producers
also produce oil. The major vertically integrated
companies include: Lukoil, Yukos, Surgutneftegaz,
Tyumen Oil (TNK), Sibneft, Slavneft, Eastern
Oil (VNK), Komitek, Grozneft, and Rosneft. Transneft
has a monopoly over crude oil transport, while
Transnefteprodukt transports petroleum products. Russia's
Gas Sector is dominated by the joint-stock
company Gazprom, which is 38% owned by the government
of the Russian Federation. Itera is rapidly becoming
a major player in the gas sector as Russia's
second-largest gas exporter. Russia's Electricity
Sector is operated by the joint-stock company
Unified Energy Systems (UES), which is majority
state-owned. UES controls 70% of the country's
distribution system, 21 thermal power plants,
8 nuclear power plants, and oversees the country's
72 regional electricity companies, known as energos. Russia's
Coal Sector is operated by Rosugol, a government-owned
holding company. Rosugol is organized along regional
lines, with separate associations for each mining
region.
Major Producing Oil Fields: Samotlor, Romashkino,
Mamontov, Fedorov, Lyantor, Arlan, Krasnolenin,
Vatyegan, Sutormin
Major Oil Terminals: Novorossiisk (Black
Sea), Tuapse (Black Sea); Russia also uses Ventspils
(Latvia), Odessa (Ukraine), Klaipeda (Lithuania)
Oil Export Pipelines outside the former Soviet
Union: Friendship (Druzhba) (1.2 million
bbl/d nominal capacity)
Major Oil Refineries (1/1/00, capacity: bbl/d): Omsk
(566,000), Angarsk (441,000), Nizhniy Novgorod
(438,000), Grozny (390,000), Kirishi (388,000),
Novo-Ufa (380,000), Ryazan (361,000), Novo-Kuibishev
(309,000), Yaroslavl (290,000), Perm (279,000),
Ufaneftekhim (251,000), Salavatnefteorgsintez
(247,000), Moscow (243,000), Ufa (235,000), Syzran
(211,000), Volgograd (200,000), Saratov (177,000),
Orsk (159,000), Samara-Kuibishev (154,000), Achinsk
(147,000), Ukhta (127,000), Nizhnekamsk (120,000),
Komsomolsk (108,000) Major Foreign Oil Company
Involvement: Agip, BP Amoco, British Gas,
Chevron, Statoil, Conoco, Exxon-Mobil, Neste
Oy, Norsk Hydro, Marathon, McDermott, Mitsubishi,
Mitsui, Royal Dutch/Shell, Texaco, and TotalFina
Elf
Major Producing Gas Fields: Urengoy, Yamburg,
Medvezh, Orenburg, Severo Urengoy, Vyngapurov
Gas Export Pipelines outside FSU (Capacity): Brotherhood
(Bratrstvo), Progress, and Union (Soyuz) (1 Tcf
each); Northern Lights (0.8 Tcf), Volga/Urals-Vybord
(to Finland) (0.1 Tcf), Yamal (0.8 Tcf), Blue
Stream (under construction)
Major Coal Producing Basins:Chelyabinsk,
Donetsk, Kansk- Achinsk, Kuznetsk, Lena, Moscow,
Pechora, Raychikhinsk, South Yakutia, Taymyr,
Zyryanka
Sources for this report include: CIA World
Factbook, U.S. Department of Commerce's Business
Information Services for the Newly Independent
States, the U.S. Energy Information Administration,
Interfax Weekly Petroleum Report, Interfax
Weekly Business Report, PlanEcon, Radio Free
Europe/Radio Liberty, U.S. Department of State,
WEFA Eurasian Economic Outlook, as well as
Eastern Bloc research and news reports.
LINKS
For more information on Russia, please see:
EIA
- Country Information on Russia
Russia Post - Up-to-date
news and info on Russia
Radio Russia - Comprehensive
coverage of the Russian radio sites
Cities.com:
Russia - Guides for Russian cities
Cybercafes.com:
Russia
World
News:Russia - News on Russia provided by World
News
Links to other U.S. government sites:
2000
CIA World Factbook - Russia
U.S.
Department of Commerce Business Information
Service for the Newly Independent States (BISNIS):
Russia
U.S. International
Trade Administration, Energy Division
U.S.
Department of Commerce Country Commercial Guide:
Russia
U.S.
Department of Commerce Trade Compliance Center:
Market Access Information
U.S.
Department of State Background Notes: Russia
U.S. Department
of State - Russia Consular Information Sheet
Library
of Congress Country Study on the former Soviet
Union
State
of Hawaii Country Profiles
The following links are provided solely as
a service to our customers, and therefore should
not be construed as advocating or reflecting
any position of the Energy Information Administration
(EIA) or the United States Government. In addition,
EIA does not guarantee the content or accuracy
of any information presented in linked sites.
Embassy
of the Russian Federation in the United States
Energy Russia: website of
the Centre for Energy Policy in Moscow, Russia
United Nations Framework
Convention on Climate Change and the Kyoto
Protocol
Interfax News Agency
Russia Today
The
Washington Post: Russia
University
of Texas - Russian and East European Network
Information Center
Columbia
University: Russia Subject Index
Lonely
Planet World Guide: Destination Russia
PlanEcon
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