Russian Industry and Energy Minister Viktor Khristenko
Photo: Dmitry Dukhanin
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Khristenko Talked Out of Price Freeze
Russian Minister of Industry and Energy Viktor Khristenko met yesterday behind closed doors with oil company representatives. At that meeting, a price freeze on gasoline was discussed. No agreement was signed, however, after the minister was convinced by the oilmen that there are no factors on the market that would drive prices up, because there are sufficient fuel reserves to rule out shortages. Therefore, the minister and the oil company representatives parted with an oral agreement.
Sources say that LUKOIL president Vagit Alekperov, Surgutneftegaz head Vladimir Bogdanov, Gazprom Neft vice president Anatoly Cherner, Rosneft vice president Dmitry Bogdanov and Tatneft deputy general director Azat Yagafarov were present at that meeting, as were representatives of TNK-BP and Bashneft.
The Ministry of Industry and Energy stated before the meeting that it would be devoted to the topic of fuel oil reserves, which Prime Minister Viktor Zubkov has said are low in some regions. Participants in the discussion confirm that Khristenko raised the question of fuel oil reserves toward the end of the meeting. He was assured that there would be no problems with fuel oil.
Analysts note that, while consumer prices have risen by more than 9 percent between December of last year and November 6 of this year, prices for motor fuel has risen only 2.8 percent. Agreeing not to raise fuel prices gives vertically-integrated companies an advantage on the market, since they have more greater reserves than independent companies.
www.kommersant.com
All the Article in Russian as of Nov. 20, 2007
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