RUSSIA CLEARS CRUDE OIL EXPORTS

Russian officials have told Canadian firms crude oil exports can be resumed after they were suspended the first 2 weeks of June. Officials in Moscow said contracts with foreign firms will be honored, but exports will be policed by a new audit system to make sure export sales do not exceed volumes allowed under joint venture agreements. Vladimir Mordasov, chief adviser to the Russian Ministry of Fuel and Energy, said activities of joint ventures threaten development of his country during a

June 28, 1993

2 min read

Russian officials have told Canadian firms crude oil exports can be resumed after they were suspended the first 2 weeks of June.

Officials in Moscow said contracts with foreign firms will be honored, but exports will be policed by a new audit system to make sure export sales do not exceed volumes allowed under joint venture agreements.

Vladimir Mordasov, chief adviser to the Russian Ministry of Fuel and Energy, said activities of joint ventures threaten development of his country during a painful transition period.

He told the Canadian Energy Research Institute, Calgary, foreign companies are taking far more money out of Russia in crude sales than they are investing. He said western companies have invested only $150 million but have taken out crude oil valued at about $610 million. That includes five Canadian firms that have taken out oil worth about $287 million but have invested only $95 million.

Dimitra Katsuris, manager of oil and gas with the Canada-Russia Business Council, Calgary, said the amount invested is about $250 million.

Canadian firms involved in major joint ventures are Gulf Canada Resources Ltd., PanCanadian Petroleum Ltd., Norcen Energy Resources Ltd., Canadian Fracmaster Ltd., and Nowsco Well Service Ltd.