By Simon Shuster Staff Writer
ST. PETERSBURG -- The government inked a deal Friday with the New York Mercantile Exchange to set up an oil exchange in St. Petersburg by year's end to better control the prices at which Russian oil is sold.
Russian crude -- specifically the blend known as Russian export blend crude oil, or REBCO -- is underpriced by $7 per barrel when sold at $60 per barrel, said Economic Development and Trade Minister German Gref, who signed the agreement Friday.
"These are huge losses not only for Russian oil companies but for our federal budget," he said. "The state is now moving toward real market mechanisms for trading oil."
President Vladimir Putin approved a proposal Tuesday allowing state agencies to organize the sale of oil and oil products on exchanges from Aug. 1. Such exchanges so far operate only in London, New York, Dubai and Tehran....
ST. PETERSBURG -- The government inked a deal Friday with the New York Mercantile Exchange to set up an oil exchange in St. Petersburg by year's end to better control the prices at which Russian oil is sold.
Russian crude -- specifically the blend known as Russian export blend crude oil, or REBCO -- is underpriced by $7 per barrel when sold at $60 per barrel, said Economic Development and Trade Minister German Gref, who signed the agreement Friday.
"These are huge losses not only for Russian oil companies but for our federal budget," he said. "The state is now moving toward real market mechanisms for trading oil."
President Vladimir Putin approved a proposal Tuesday allowing state agencies to organize the sale of oil and oil products on exchanges from Aug. 1. Such exchanges so far operate only in London, New York, Dubai and Tehran....
By Nikolaus von Twickel Staff Writer
President Vladimir Putin will face pointed questions about government policy and the image he is trying to project for Russia when he sits down with foreign business leaders Saturday at the St. Petersburg International Economic Forum.
But the invitation-only audience of 100 CEOs from more than 20 countries will be far from hostile during the 90-minute roundtable Saturday evening. Putin will find that they are enthusiastic about the opportunities available in Russia and eager to invest billions of dollars.
"We would like to explore what Russia has to offer," said Aly Aziz, chairman and CEO of Dashwood Group, a London-based investment company looking to invest $1 billion in Russia. "I remember that there was great potential in the sugar industry. We would be looking [to see] if such a possibility still exists."
Dashwood, which operates mainly in Southeast Asia and Latin America, specializes in agro-industrial and renewable energy projects.
Sir Martin Sorrell, CEO of advertising giant WPP, said he would like to ask Putin what kind of brand image he wanted to give Russia and to market around the world.
Sorrell, whose company earned $100 million in Russia last year, would not say what answer he hoped to hear from Putin: "I would leave it to him as we do with all our clients. We are just implementing it."...
President Vladimir Putin will face pointed questions about government policy and the image he is trying to project for Russia when he sits down with foreign business leaders Saturday at the St. Petersburg International Economic Forum.
But the invitation-only audience of 100 CEOs from more than 20 countries will be far from hostile during the 90-minute roundtable Saturday evening. Putin will find that they are enthusiastic about the opportunities available in Russia and eager to invest billions of dollars.
"We would like to explore what Russia has to offer," said Aly Aziz, chairman and CEO of Dashwood Group, a London-based investment company looking to invest $1 billion in Russia. "I remember that there was great potential in the sugar industry. We would be looking [to see] if such a possibility still exists."
Dashwood, which operates mainly in Southeast Asia and Latin America, specializes in agro-industrial and renewable energy projects.
Sir Martin Sorrell, CEO of advertising giant WPP, said he would like to ask Putin what kind of brand image he wanted to give Russia and to market around the world.
Sorrell, whose company earned $100 million in Russia last year, would not say what answer he hoped to hear from Putin: "I would leave it to him as we do with all our clients. We are just implementing it."...
