Yeltsin creates new oil company in Moscow
Russian President Boris Yeltsin has signed a decree that will form the basis of a new oil firm to be called the Central Fuel Company. It said the president signed a decree ordering the transfer to the Moscow city government of 38 % state stakes in oil products trader Mosnefteprodukt and in the Moscow Oil Refinery, and that the move would create the Central Fuel Company. The decree frees Mosnefteprodukt and the Moscow Oil Refinery from inclusion on a government list of strategically-significant companies whose state stakes cannot be sold in the near term. It did not say whether stakes in the new company would eventually be offered to domestic or foreign investors, but said the Moscow city government would be the founder of the company. The new firm will work to ensure supplies to the capital and to surrounding regions. The Central Fuel Company is the latest firm to emerge from a string of Yeltsin decrees that have restructured Russia's oil sector into around a dozen vertically-integrated and independent oil companies. The new firm has no crude oil production units. Mosnefteprodukt is a distributor of petroleum products. The Moscow Oil Refinery is now managed by Rosneft, the state oil holding company which is being privatised.