Oil moves slowly at the Russian government roulette

The recent halt in growth at Yuganskneftegaz comes as an ominous sign that Russia has mismanaged the nationalization, analysts and industry insiders say.

“Russia has to show that it’s not just a big energy partner but a potentially much bigger energy partner, particularly to the United States,” said Christopher Weafer, chief strategist at Alfa Bank. In another sign of the government’s sway over the oil industry, the country’s largest crude oil producers agreed recently at a meeting with the minister of industry and energy, Viktor B. Khristenko, to freeze domestic gasoline prices until the end of the year. The decision reflected popular pressure on Putin’s government as gasoline prices rose to around $2.52 a gallon, not far from American levels, on the heels of high crude oil prices on commodities markets. Farmers protested in one Siberian region.

Financial Express