Russian Energy Minister at Premier Gas Industry Event in London

Alexander Novak pledges Russian Government will be open to foreign investment

The Russian Government is considering a range of measures to provide greater opportunities for foreign investment in state-owned companies, it was announced today at the Gastech Conference & Exhibition in London.

At a press conference during a specially arranged “Day of Russia” at the conference and exhibition, Mr Novak said that the Russian Government was investigating a series of incentives as well as potential amendments to current legislation. He said this had the potential to provide opportunities for major operators to buy stakes in state-owned companies, or to work in partnership with domestic companies to develop particularly challenging fields.

He said: “For Russia, the oil and gas industry sector is a very important sector that has an effect on federal reserves and the whole economy. Russia is one of the leading producers of gas and we supply gas to many countries.”

Mr Novak said Russia had a role to play in ensuring global energy security and the government was changing its approach and considering a range of “possible mechanisms” to allow private investors to have a stake in Russian organisations, a move which under current legislation must be approved by the Russian Government.

He added they would welcome the “presence and participation” within the Russian energy industry of foreign majors including Total, ExxonMobil and Shell.

A major benefit of Gastech is the opportunity it provides for organisations to collaborate,  network and forge new relationships – and in Mr Novak’s presence, a new agreement was signed today between Russian petrochemical company, Sibur, and international chemical group, Solvay, which is headquartered in Brussels. The agreement will see the establishment of Ruspav, a 50/50 joint venture for the production of surfactants and oilfield process chemicals in Dzerzhinsk, Russia.