Vladimir Putin has chaired a meeting in Severodvinsk on the development of the oil and gas sector of the Russian Federation.Part 1
11 July 2008
Вступительное слово В.В.Путина.
11.07.2008
Good afternoon, dear colleagues,
Today we will discuss the development of the oil and gas sector. I am very glad to see a representative team of regional leaders, the heads of major companies and my government colleagues.
The sector has been growing steadily in recent years. Last year Russia became the biggest oil producer in the world. We have been the biggest gas producer for several years now. Last year we moved into first place as oil producers.
At a glance, everything is going well. However, there are some trends that give cause for concern.
The growth of oil production has slowed from 11% in 2003 to a little over 2% in 2007. We already see negative dynamics in the beginning of this year (a drop of output by 0.3% in the first quarter).
It has been our goal all along to develop the manufacturing industries faster than the extractive industries, which is what we see today. It is true that the manufacturing industries account for a bigger share of the GDP than the oil industry or other extractive industries. But surely we have not sought such an effect resulting in the stagnation of the oil and gas sector and of the energy sector as a whole.
Obviously the Russian oil industry, and indeed the gas industry, has approached a serious watershed. The potential for growth provided by former reserves and technologies has actually been exhausted.
The future can be assured only by a serious effort at retrofitting current centers and the formation of new strategic oil and gas extraction centers. I mean Yamal, Eastern Siberia, the Timano-Pechora province. And of course, the future belongs to the development of vast offshore reserves.
We will hear a separate report today on the preparation of a government programme for offshore development.
It is extremely important to set long-term goals for the industry, to form a system of incentives for its development.
Preparation of the policy documents must be completed this year, starting with the Energy Strategy to the Year 2030. General designs for the development of pipeline transport and the gas industry must be tied in with the strategy. It will enable the oil and gas companies to make their plans for exploration and development of new fields with confidence.
We have no doubt that today, in the medium and long term, we will fully ensure the needs of the rapidly growing Russian economy and meet our commitments to our foreign partners. As before, we will behave in a responsible way.
Our energy policy will be understandable, transparent and liberal. We are not going to slide into "economic egoism." We will continue to take into account the legitimate interests of our partners. But of course, we will be guided above all by our national interests. We are not going to adjust ourselves to anyone. Those who want to work with us, should adjust their policies to ours, based, of course, on transparent market principles.
Let us take a closer look at what is happening in the industry.
The current customs and tax scheme, especially with inflation growing, has become a brake on investment activities. For every rouble invested we take away from the industry 85%. That is, of course, too much, especially in present-day conditions. We have already cut taxes on oil companies. You know that the Federation Council today passed a comprehensive package of documents that would remove this excessive load. Experts are talking about 130-140 billion roubles a year, which the industry will keep, your enterprises and your companies will keep. We expect that the extra financial resources will be directed towards development. That is the whole point of the steps I have mentioned.
Additionally, proposals are being prepared on granting "tax holidays" as well as some other strategies regarding taxes on the development of remote fields in the Sea of Okhotsk and the Black Sea, as well as in the Yamalo-Nenets Autonomous Area.
http://www.government.ru
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