RusEnergy

06.02.2007 - MosNews - The president of Russia’s largest private oil company Lukoil said on Tuesday, Feb. 6, that all Russian crude must be refined inside the country. Vagit Alekperov was speaking at a meeting between Russian President Vladimir Putin and the leaders of the Russian Union of Industrialists and Entrepreneurs. He said that a halt in crude exports should be a top priority for all Russian oil companies. Russian oil companies currently export 50 percent of the crude extracted in the country. In addition, they export 50 percent of refined products. Russia consumes 25-27 percent of refined products, Alekperov said, quoted by RIA Novosti. Lukoil president said that transition to the tougher Euro-5 car emissions standard by 2015 will require a $5 billion investment in Russian refining facilities. Also, additional funds and the concentration of labor are required to build new petrochemical facilities in Russia, Alekperov said. In this connection, he proposed that the Russian government shifts the tax burden from environmentally friendly to environmentally hazardous enterprises to stimulate the establishment of petrochemical complexes.