Rossiyskaya Gazeta: “Golden resources“
The Russian Government Presidium discusses geological exploration and oil export duties.
The Government Presidium met at the Government House to discuss geological exploration and development on June 16. Before proceeding to the agenda, Prime Minister Vladimir Putin held a traditional quiz of the Cabinet members.
During the meeting, a statement made by Deputy Prime Minister Igor Sechin caused a sensation. A proposal submitted to the Presidium concerned customs duties for East Siberian oil, which were abolished last year. The measure justified itself, but the need to balance the federal budget and attain self-sufficiency at some deposits forced the government to revise the zero rates.
The strategy voiced by Sechin provides for the following plan. The budget will receive 45% of the positive difference between the real oil price and a price of $365 per metric ton ($50 per barrel). If this plan is put into effect in July, the budget will receive $353.2 billion in extra revenues over the next three years. If the profitability rate of companies exceeds 15%, then they will have to pay customs duties in full.
Putin asked Alexei Kudrin, the deputy prime minister and finance minister, if his ministry supported the plan. He replied affirmatively. However, Natural Resources Minister Yuri Trutnev said later that the Presidium had not passed the decision.
At the meeting, it was stated that Trutnev planned to meet with his Chinese partners in Khabarovsk to discuss trans-border rivers. The prime minister asked him about the goal of his trip.
Pollution is a pressing issue for Far Easterners", the minister said. "China is implementing a programme for 40 types of pollutants and the situation has improved greatly. But problems still remain."
Putin asked Trutnev to submit proposals on clean-up operations in the North, for example, in Franz Josef Land.
"We must clean up the waste that gathered during earlier times," Putin said. Some 1.2 billion roubles will be spent on the project.
The minister replied that the work may commence in early 2011.
Putin also recalled his visit to Losiny (Elk) Island, where a young ecologist voiced his proposals to enhance responsibility for environmental damages. He recently sent them to Putin and Trutnev promised to review them.
Putin also asked Deputy Prime Minister Dmitry Kozak about proposals to remove excessive administrative barriers in the construction sector. Kozak read a plan of proposed measures and said those that have been coordinated with the relative agencies are already being implemented. About half of them will be carried out by the end of this year.
The prime minister's final questions were addressed to Sports Minister Vitaly Mutko and concerned Russia's bid to host the 2018 World Cup.
Mutko informed Putin about the recent FIFA congress. He said Australia has revoked its bid and, most probably, the United States will follow suit. Thus, the UK, Belgium, the Netherlands, Spain and Portugal remain in the race. Members of the FIFA Executive Committee will visit Russia in June-July, and the FIFA Assessment Commission is expected to arrive in late August. The final decision will be taken in December.
However, the main topic of discussion was the development strategy for the geological exploration sector until 2030. The Presidium approved the strategy.
Putin began by stating that Russia is one of the world's leaders in terms of mineral resources, such as oil, natural gas, iron ore, coal, gold, silver, diamonds and lead.
Russia must rationally use this competitive advantage, he said. Presently, there are 10 roubles of private investor funds for every state budget rouble invested in the sector. The main thing, though, is that the prospected reserves of all strategic minerals must grow faster than their annual output.
"The top priority tasks in geological exploration have already been fulfilled, so we must work for the future," Putin said. As an example, he stressed that a clear differentiation must be established between the state and business spheres of competence. The state must finance early exploration stages and ensure maximum access to archives. Pay for geological information on deposits has already been abolished. Moreover, excessive administrative hindrances barring small- and medium-sized businesses from geological exploration must be removed.
The closed-door segment of the government meeting focused primarily on prospects for developing the sector, rather than the successes already achieved. Nevertheless, Trutnev presented a summary of achievements at a briefing after the meeting. Over 500 deposits have been discovered, while budget spending for geological exploration increased fourfold and subsoil user investments jumped five times. Meanwhile, state revenues from the sale of rights to use subsoil resources surged twelve times over five years, with state revenues from mineral taxes rising sixfold. In 2010, oil reserves reached their 1990s level.
The meeting also set forth a number of tasks for the sector, such as making mineral mining more attractive for investors, creating better conditions for storing primary geological material, transferring all data to a digital format, establishing joint-stock production companies, and setting up a Rosgeologia holding. There are also two system-level issues, such as the need to produce domestic equipment and to adapt the educational system to the sector's requirements, Trutnev said.
Also worth mentioning is Putin's chairmanship of another meeting yesterday to discuss budget spending for national defence and security. At the meeting, he discussed the amount of the required state funds and reforms of the money allowance system for servicemen.
"We are talking about a new image of the Armed Forces, primarily, the provision of the Army and Navy with modern arms," Putin said.
This year, the state defence budget has reached a record sum of 1.174 billion roubles, of which 375 billion will pay for the supply of a rather large batch of new modern weapons, Putin said, placing a special stress on "new".
Kira Latukhina
