Medvedev to modernize Russian energy complex

[Russia's energy]

* To introduce new tendencies in the energy feild

* President seeks changes in the energy trade system

Russia: Russian President Dmitri Medvedev called for a modernization of the energy and fuel complex since the country could fall behind in the international market.

During a meeting in Tomsk region, the Russian President also said that it was necessary to introduce new tendencies in traditional fields in Russia such as exploitation of hydrocarbons.

Oil and gas production represent a third of the economy and 40 percent of state incomes, Medvedev recalled.

Although we have a broad infrastructure to drill hydrocarbons and large deposits, we may fall below great producers if investments and innovations in the sector are insufficient, warned the statesman.

For this purpose tariffs of oil exports can be reduced and propose credits to companies that work under extreme climate conditions, Medvedev suggested.

The Russian President also considers necessary changes in trade system of fuel in spite of long term contracts of future sales in the market.

Sale of crude in the stock market barely reaches two percent and it would be necessary to raise it to 15, he pointed out.

On the other hand, to “eliminate criminalization” in the sphere of oil production he called for an improvement of the system of identification to prevent that certain volumes of crude be sold as derivatives that some times are exempt from tariffs.

In Russia there are about 196 mini-refineries, the majority built in the past five years but 116 operate without certification.

Almost all of the Russian oil sector is privatized.

Although it supplies large incomes to the state budget this sector is out of control, Medvedeve recognized.

Moscow, Prensa Latina