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Fri, 2 May 2003 RUSSIA ENERGY INFO

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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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Enerflex Announces Record First Quarter Revenues



Enerflex Announces Record First Quarter Revenues



ATOFINA Announces Additional Investment and Improvement in Riverview, Michigan Site



Newfield Elects Kemp to Board of Directors



Bridgeline Holdings Selects OpenLink's Endur and gMotion



Newfield Elects Kemp to Board of Directors



Libbey Inc. Holds Annual Shareholders Meeting; Chief Executive Reviews Initiatives to Drive Shareholder Value



Amity Oil, GeoPetro in farmin agreement with KNOC, SCG



Putin discusses gas pipeline consortium with Ukraine's president



Sempra Energy Reports First-Quarter 2003 Earnings



TXU Reports Better Than Expected First Quarter Results



Sempra Energy Reports First-Quarter 2003 Earnings



SSWM, Inc. to Present to Cal EPA and Western States Petroleum Association; California Regulators & ...



Sempra Energy Reports First-Quarter 2003 Earnings



Sempra Energy Reports First-Quarter 2003 Earnings



W-H Energy Services Earnings Per Share Up 75% From Previous Quarter



W-H Energy Services Earnings Per Share Up 75% From Previous Quarter



TXU Reports Better Than Expected First Quarter Results * 1Q 2003 earnings from continuing operations: ...



TXU Reports Better Than Expected First Quarter Results



DDB wins pitch to help save power



W-H Energy Services Earnings Per Share Up 75% From Previous Quarter



W-H Energy Services Earnings Per Share Up 75% From Previous Quarter



Technical details for oil refinery agreed on



Former Chief of Westar Energy Received $10 Million Compensation Package



MISC to buy American Eagle



Asia reels under impact of SARS



Ross Smith Energy Group Completes Positive Assessment



Cabinet nod for BPCL equity hike in Bina refinery



Canada's Tracer Petroleum takes control of RP's Forum



Indonesian fields boost revenues for CNOOC



Enough, Maharashtra to regulate water



Oil supply fears help CNOOC drive up profit



A package of news briefs from the Caribbean



Tokyo Gas Group Net Profit Up 14.0 Pct in FY '02



Regulator rejects Iberdrola's Gas Natural bid

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