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Putin criticized Russian Oil Refining Industry and Suggested Confiscating Profit From Companies Sabotaging Oil Refinery Plants Modernization

Russian Prime Minister Vladimir Putin held a meeting dedicated to the tasks of the oil and oil refining industries development yesterday in the town of Kirishi.

The expected volume of oil production in Russia is 508-509 million tons. Putin reminded that last year Russia took the first place in oil production in the world – about 505 million tons, and he called such volume “optimal”.

However the head of the Russian government did not only enumerate dry figures, but also severely criticized oil companies for creating ‘technological off-shores’ and for the default on their commitments to increase oil conversion ratio. He reminded that once oilmen ensured the government that the money they get from the difference of duties on crude oil and dark oil products will be invested into the development of deeper conversion, but this never happened. According to him the Russian state budget bears considerable losses due to such schemes. Putin thinks that it is high time to draw a line in the drawn-out discussion about leveling duties and in this connection he ordered within two weeks to introduce a draft resolution on how to solve this task. As the prime minister pointed out the experts consider the possibility of a slight increase in oil products prices allowing the market factor.

Putin also suggested introducing the control over the oil products retail in Russia, with the aim of avoiding their deficit. The prime minister ordered the specialized ministers to prepare the balance of manufacturing and consumption of all types of fuel and oil products. He emphasized that already now the need in oil products in the country increased till almost 90 million tons. “In future it will only get bigger and bigger. I’d like to emphasize — the shortage of oil products, fluctuations in prices must not become the hindrance for economic growth, the source of problems for the citizens of Russia,” – he pointed out. The Federal Antimonopoly Service is given a task of paying more attention to monitoring the prices in the domestic market.

Besides at the meeting Putin touched upon the subject of oil products quality. In Putin’s opinion Russian oil refining industry in this respect made a huge step back to the level of the middle of the last century. Oil companies must bear responsibility for supplying the domestic market with quality fuel that is why the prime minister said that he supports introducing higher excise duties for low quality fuel.

Vladimir Putin suggests confiscating the groundless profit from the oil companies which sabotaged oil refinery plants modernization. The state is not going to continue putting up with the situation when the replication of “samovars” and “oil stoves” is presented as real modernization, Putin said and demanded to confirm all plans of reconstructing oil refinery plants with Energy Ministry and the Russian Technical Supervisory Authority

Photo: Russian Prime Minister Vladimir Putin

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