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JOINT VENTURE OIL EXPORTS HIT $1 BILLION

March 14, 1994

Thirty-seven oil producing joint ventures in Russia exported more than a combined $1 billion worth of oil during 1993. Destination of the crude isn't disclosed by the Russian Fuel & Energy Ministry, which supplied the export data. Foreign investment in Russians oil industry for the period was $230 million. A combined 45 JVs are registered in the Russian downstream segment. According to ministry estimates, JVs are expected to export petrochemicals worth more than $500 million this ar. In

Thirty-seven oil producing joint ventures in Russia exported more than a combined $1 billion worth of oil during 1993.

Destination of the crude isn't disclosed by the Russian Fuel & Energy Ministry, which supplied the export data.

Foreign investment in Russians oil industry for the period was $230 million.

A combined 45 JVs are registered in the Russian downstream segment. According to ministry estimates, JVs are expected to export petrochemicals worth more than $500 million this ar.

In 1993, upstream capital investment by 10 JVs tracked by the ministry was less than $25 million.

Some industry specialists say Jvs have been depositing most of their hard currency earnings in foreign banks outside Russia.

The ministry notes that many JVs, have been considerably underquoting the value of geological and other information transferred by the Russian partners as their contribution to the JVs authorized capital. As a result, the ministry said, the Russian, partners' equity is inadequate to their participation in the JV.