Political chaos reins progress on new joint ventures in Russia

Journal Article · Mon Mar 16 04:00:00 EST 1992 · Oil and Gas Journal; (United States)

OSTI ID:5518154

This paper reports that frustration is mounting among foreign petroleum companies chasing business opportunities in Russia. Political uncertainty continues to block large oil and gas exploration and production deals there. Most foreign officials believe Russia's transformation from a centrally planned economy to a market economy is irreversible. But enough political, social, and economic uncertainty persists that Russian leaders are hesitant to approve deals with foreign companies. The lack of certainty among leaders of the former Soviet republic about who controls Russia's natural resources, who can approve contracts, and who determines winners of bid tenders is causing confusion among foreign companies trying to negotiate major E and P deals. With no clearly successful path apparent for completing large deals, various secondary negotiating strategies are prevailing. Russian industry specialists say those secondary strategies work best for small deals involving relatively small players in less prospective regions. Meantime, countervailing political forces within the country, the world's top producer of oil and gas, continue to buffet petroleum companies that are negotiating deals or getting projects off the ground.

• OSTI ID: 5518154
• Journal Information: Oil and Gas Journal; (United States), Journal Name: Oil and Gas Journal; (United States) Vol. 90:11; ISSN 0030-1388; ISSN OIGJA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
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03 NATURAL GAS
030600 -- Natural Gas-- Economic
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29 ENERGY PLANNING, POLICY, AND ECONOMY
294002 -- Energy Planning & Policy-- Petroleum
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ASIA
CONTRACTS
DEVELOPED COUNTRIES
ECONOMY
EUROPE
FOREIGN POLICY
GLOBAL ASPECTS
GOVERNMENT POLICIES
INDUSTRY
INSTITUTIONAL FACTORS
NATURAL GAS INDUSTRY
PETROLEUM INDUSTRY
PLANNING
POLITICAL ASPECTS
USSR