RUSSIAN ECONOMY SHOWS MORE SIGNS OF COLLAPSE LED BY FUEL INDUSTRY

Russia's economy received another severe setback during this year's third quarter, with the fuel industry playing a major role in the nation's overall production decline. Moscow officially reported that Russian natural gas flow, which had held almost steady during first half 1992 vs. the comparable 1991 level, fell an unexpected 3% during August. Gas condensate production is showing much larger losses.

Oct. 19, 1992

Russia's economy received another severe setback during this year's third quarter, with the fuel industry playing a major role in the nation's overall production decline.

Moscow officially reported that Russian natural gas flow, which had held almost steady during first half 1992 vs. the comparable 1991 level, fell an unexpected 3% during August. Gas condensate production is showing much larger losses.

Crude flow during the first 8 months of 1992 dropped about 14% from the same 1991 period, with 13% of development wells idle in late August. Gas production in August was 11% below the August 1991 volume.

Unofficial Moscow sources have predicted that Russian crude flow for all of 1992 will be down nearly 14.8% to about 7.84 million b/d, with gas production off less than 1% at 22.5 tcf. Gas condensate flow is expected to skid 12.7% to 179,000 b/d.

Petrochemical production also plummeted in August. Plastics, fertilizer, and chemical fibers were especially hard hit.

Whereas overall Russian monthly industrial production fell an average 13-15% during first half 1992 vs. the same 1991 months, the July drop was 21.5% and August 27.2%.