Abstract.

The concept of structural development and privatization of petroleum production and refining industries within the fuel and energy sector is based on the main following principles:

  • operating technological complexes in the production, transportation, refining and marketing should be retained;

  • the government will control the industry by means of direct participation in assets of joint stock companies in the transitional period;

  • funds raised in the course of privatization are used as an additional source of financing the petroleum industry, reconstruction of operating facilities and new development;

  • financially strong companies competitive in the domestic and world markets of crude oil and petroleum products should be formed.

These principies have been laid down in the Decree of the President of the Russian Federation N 1403 of November 17, 1992 'Privatization of state enterprises, R&D institutions in crude oil production, refining and marketing and the formation of joint stock companies'. Following the Decree three vertically integrated petroleum companies Lukoil, Yukos and Surgutneftegaz have been formed, which comprise the whole technological chain from field development to oil refining and marketing of oil products. In the near future not less than three similar companies are planned to be formed. Stock companies ‘Transneft’ and ‘Transnefteproduct’ have been established to provide pipeline transportation, and state company ‘Rosneft’ responsible for implementation of government policy of petroleum development through management of shares in federal ownership.

The Ministry of Fuel and Energy of the Russian Federation will focus its activity on the development of legislation, economic mechanism of management, promotion of competition in the energy sector, working out a strategic program of licensing of petroleum resource development. 1. RESTRUCTURING OF PETROLEUM INDUSTRY The concept of structural development and privatization of petroleum production, refining industry and marketing with regard to specific features of the fuel and energy sector is based on the following main principles:

  • operating technological complexes in production, transportation, refining and marketing should be retained;

  • the government will control the industry by means of direct participation in assets of joint stock companies in the transitional period;

  • funds raised in the course of privatization are used as an additional source of financing the petroleum industry, reconstruction of operating facilities and new development;

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