The uncertainty as to what the government's regulatory functions in the oil sector will be complicates the investment climate, Mr Litvak said, adding it was not just Yukos that he had in mind, but other major Russian oil producers, too.
The main problem lies in taxation stability, or lack thereof, to be precise, the WB expert pointed out. He said he was under the impression that the Russian government could put its hand into a citizen's pocket any minute and that its tax-related decisions were often inconsistent.
Some experts deem it appropriate to raise Russian oil duties further; others argue that the tax burden on the oil industry is too heavy already, Mr Litvak said, adding that both viewpoints seemed valid to him.
The creation of stable conditions for future distribution of oil returns between the producer and the government would certainly help improve the investment climate, pointed out the WB expert. He spoke in favor of a speedy overhaul of Gazprom, a Russian natural gas major.
The gas sector gives little reason for optimism: active debates are going on, there's a lot of information on paper, but no tangible progress has yet been made, said Mr Litvak. Without an overhaul of Gazprom, the efficiency of the gas industry will be impossible to raise, he pointed out. He argues that making pipelines accessible to independent producers should be a priority task with the Russian government.
