Tatarstan President: “We should work with oil companies in a constructive way”

On May 27 at a meeting with heads of small oil companies chaired by Tatarstan President Rustam Minnikhanov results of work for the 1st quarter of 2013 and prospects of further development were considered.

Opening the meeting, Rustam Minnikhanov noted that slackening in the rate of economic growth and Russia’s joining the WTO undermined country’s economy. In particular, decline in demand for oil and chemical produce had a negative impact on oil industry. Therefore, Tatarstan budget revenues considerably reduced in the first quarter of 2013.

Rustam Minnikhanov continued that notwithstanding such situation some of Tatarstan oil companies were able to mobilize inner resources and achieved good results. However, we worry about negative results of certain small oil companies, he said.

According to Director General of ZAO “Nefteconsortium” Fanis Valiev, small oil companies produced 1639 thousand tons of oil that exceeds planned rates by 3 per cent. At the same time, fall in global oil prices in rise in Mineral Extraction Tax had a negative impact on financial and economic indexes of oil companies and resulted in considerable decline in profits.