IS STAGE-BY-STAGE IMPLEMENTATION OF RUSSIAN ENERGY STRATEGY THREATENED?

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MOSCOW, December 9 (RIA Novosti) - The stage-by-stage implementation of the Russian energy strategy may be disrupted, warned Deputy speaker of the Federation Council Alexander Torshin at the parliamentary hearings on Energy Strategy of Russia: problems and solutions on Thursday.

"At present, the country does not have a stable legislative base to ensure the implementation of a long-term energy strategy," he emphasized.

In his turn, Director of the energy industry department under the Ministry of Industry and Energy Anatoly Yanovsky stated that "in 2004, Russia failed to fulfill the task of attracting investments necessary to implement the energy strategy." He said that by 2010 the production of natural gas in Russia might decrease by 180-200 billion cubic meters.

In the first half of 2005, the Ministry of Industry and Energy, Mr. Yanovsky said, will prepare a set of documents on the reform of the gas market in Russia.

According to Mr. Yanovsky, the ministry is developing the general concept of the reform of Russian gas industry till 2030, which will include, in particular, the suggestions on the development of transportation system of the gas sector.

The second set of suggestions will be dedicated to the development of the gas industry in Western Siberia, and the third - to the development of oil pipeline construction industry, in particular, the creation of infrastructure necessary for effective development of the gas market, Mr. Yanovsky said.

The purchase of Silovye Mashiny stock by German concern Siemens, according to Mr. Yanovsky, will not harm the Russian energy strategy.

"I do not have reasons to believe that by acquiring the bloc of Silovye Mashiny shares Siemens will harm the interests of the Russian company or the Russian energy industry in general," he underlined.

Deputy department head of the Energy Ministry Stanislav Ananyev also harshly criticized the Russian energy strategy during the hearings.

"We need to make several thorough revisions of the energy strategy to determine the role of independent producers of energy," he stated.

According to Mr. Ananyev, Russia must diversify its energy markets in the next couple of years. "The optimal price of electricity must be three cents per kilowatt/hour, which will consequently attract investments in the energy sector," he believes.

He agreed with Mr. Yanovsky's evaluation of the purchase of Silovye Mashiny stock by Siemens. "The most important thing is that foreign technologies, acquired, for example, through the sale of Silovye Mashiny stock to Siemens, must meet high standards required by the Russian energy strategy," Mr. Ananyev emphasized.

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