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  • The restructuring process in Russia's oil-industry that was seen in 2005 and 2006 will probably still be a major feature in 2007. Some very important companies, like Lukoil and TNK-BP, have been threatened with license withdrawals. What has happened on both the Sakhalin-I and Sakhalin-II projects, particularly with Shell, is certainly an important point. What is happening now has not been a lightning strike out of the blue. The Russian oil sector has known several phases and a chaotic history since 1988. From an administration-like structure, it was transformed under former president, Mikhail. S. Gorbatchev, to a state-owned, commercial-like sector. The subsequent privatization process (1992-1998) has raised many doubts, and not just on process legality. A second phase took place from 1999 to 2003. The state began to implement greater control on export flows, mostly to implement a new tax system.


    Jacques Sapir, Contributing Editor, FSU

    Russia's oil sector: Is more state control looming in the future?

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