[Goldfisch]

Putin Says Russian State Won’t Nationalize Oil Companies

Created: 31.01.2006 14:58 MSK (GMT +3), Updated: 14:58 MSK, 53 minutes ago

Russian authorities have no plans for state monopolization of the oil and natural gas sector and the state does not intend to nationalize any of its major oil companies, Russian President Vladimir Putin said at his annual news conference on Tuesday, Jan. 31.

Answering a question from a reporter, who failed to name himself and his publication, Putin pointed out that the oil and gas sectors were under government control in many countries of the Organization of Petroleum Exporting Countries (OPEC), as well as some leading non-OPEC countries such as Norway.

“There are about a dozen large private oil companies in Russia, including Lukoil, TNK-BP, and Surgutneftegaz,” Putin said, quoted by RIA Novosti. “The government is not going to nationalize them or interfere with their operations.”

Putin said they would continue operating as private companies, in line with the need of the market. “This is the best possible balance for the Russian economy,” he said.

He also said the British partners in the TNK-BP joint venture were satisfied with the market conditions in Russia. UK oil major British Petroleum produces one third of its oil through the joint venture, Putin said. “This is a huge amount,” he said. “The Russian government has allowed joint ventures to develop vast resources,” Putin said, in what he said was a Russian contribution to global economic stability. This is the road we will continue pursuing.“