Experts Predict End of Oil Boom in Russia

The Organization for Economic Co-operation and Development (OECD) released research on the state presence in the fuel and energy complex in CIS countries last week, claiming that the share of Russia, Kazakhstan, Azerbaijan, Uzbekistan and Turkmenistan in the world growth of oil supply shrank to 30-35 percent by 2005, compared to 60 percent between 1984 and 2004. The OECD blames it on the regulating governmental policies in Russia and Kazakhstan.

Realizing the oil supply potential of the CIS: The impact of institutions and policies, drawn up by Rudiger Ahrend and William Tompson, focuses attention on the role of five former Soviet countries on the oil market. The experts note that the share of the five nations in the oil supply increase has gone down to 30 percent from 60 percent in 1998, according to early estimates of the OECD. The paper points out to a fast revival of oil markets in Russia, Kazakhstan and Azerbaijan after the collapse of the Soviet Union but says that the process is to come to an end soon.