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| volume 9, issue #20 - Thursday, October 14, 2004 | |
11-09-04 The funds raised from sale of Chechen energy resources will be fully contributed to the Chechen economy. Chechnya will restore its oil processing industry and continue the sale of its crude oil, the press service of the Chechen president told. Acting Chechen president Sergei Abramov declared at the previous meeting of the Chechen government that revenues to the Chechen budget would be doubled at the expense of the restoration of the Chechen oil processing industry. Experts believe that inconsiderable financial contributions are needed for that purpose. As soon as this task is resolved more work places will be created in Chechnya, experts said. Chechen President elect Alu Alkhanov
appealed to the Russian leadership, asking that the funds earned from oil sale should be directly channelled to the restoration of the Chechen economy and its social infrastructure. President Putin approved the proposal made by the local authorities that all the funds raised from exports of Chechen oil should be contributed to the restoration of the Chechen economy. According to experts estimates, annual revenues from oil exports might exceed $ 370 mm provided that the average price per barrel on the world market remains at level of $ 30. Source: PetroEnergy Information Network
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Chechen government brings oil sector under control
Negotiations to this effect have been going on with the Russian government. All the problems connected with a change in the activities of the Chechen oil sector will be settled in a few weeks' time.
At present, Grozneftegas -- an affiliated department of Rosneft, supervises oil production and oil sale.
Chechnya needs broad economic powers so as to overcome the economic crisis in a short period, Alkhanov said. The oil sector, from which Chechnya gets only 49 % in revenues yet, is the way to achieve that, Alkhanov said.
"I think that is possible," Putin said at meeting with Alu Alkhanov and vice-premier of the Chechen government Ramzan Kadyrov.
Chechen oil workers have been given the task to increase oil production to 5 mm tpy. Industrial oil reserves in
Chechnya exceed 50 mm tons, while the oil prospecting potential in Chechnya was estimated at 800 mm tons.
