• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Does Toyota Know Something That We Don’t?
  • 5 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 2 days World could get rid of Putin and Russia but nobody is bold enough
  • 1 day America should go after China but it should be done in a wise way.
  • 5 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 4 days China is using Chinese Names of Cities on their Border with Russia.
  • 5 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 4 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 10 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
  • 5 days Putin and Xi Bet on the Global South
  • 5 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 6 days United States LNG Exports Reach Third Place
  • 6 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Breaking News:

U.S. Crude Oil, Gasoline Inventories Boom

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Russia Has No Plans To Further Privatize Oil Industry

Russia does not plan to privatize its oil sector, Kremlin spokesman Dmitry Peskov told media, after former Finance Minister Alexey Kudrin insisted that the oil industry must be privatized fully in the next seven to eight years.

“The oil sector should be fully privatized in the next 7-8 years, no state companies are required there now as the statehood brings more harm than benefit to those companies,” Kudrin said at the St. Petersburg International Economic Forum this week, adding that the oil industry did not need the help of the government to deal with the problems it encounters. Kudrin also noted that state ownership brought more harm than good to oil companies in Russia.

Peskov, however, said that although Kudrin’s opinion is a “well-known expert point of view” and although he “defends it reasonably enough,” it is not the only opinion on the table, and for now Moscow has no plans to privatize any state-owned companies.

Oil revenues are a key contributor to the Russian budget, although estimates vary about exactly how much the contribution is as part of the budget. According to the country’s Finance Ministry, these constituted around 40 percent in 2016, down from about 50 percent back in 2014. The decline came on the back of the oil price crash, but oil revenues remain vital for the federal budget.

This means that the Kremlin has no interest in privatizing its oil industry, all the more so now that prices have improved and are likely to stay much higher than the base-case scenario stipulated in this year’s federal budget: US$40 per barrel.

In fact, thanks to this oil price recovery, the World Bank forecast that Russia will swing into growth this year, with GDP rising by 1.3 percent this year and by 1.4 percent next year and 2019.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News