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Investment risky in Russia as politics affects profits

07/16/2007
Increasing scrutiny this year of TNK-BP’s Siberian natural gas assets and actions subsequently taken follow unsettling patterns of behavior in the way the Russian government has been running its gas business.The government has reneged on a number of previously signed business agreements with various companies and threatened to halt multibillion-dollar, internationally sponsored operations after significant amounts of time and money had been invested in those projects.Russia’s Natural Resources Ministry, claiming that TNK-BP was not producing enough gas from massive Kovykta gas field in Eastern Siberia, threatened in late May to revoke the company’s license to develop the...
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