Russian view of ventures brightens

Russia's attitude toward prospects for massive foreign investment in its ailing petroleum industry has shifted from ill-concealed disappointment to widely expressed optimism. Major exploration and development deals that have been long delayed and often verged on collapse are now being implemented at an accelerating pace. Moscow media reports, which as recently as last winter emphasized the meager number and relatively small size of active foreign joint ventures designed to bolster sagging oil output, have turned distinctly upbeat. That also contrasts with attacks in recent months by Russian media against high profile ventures such as Chevron Corp.'s Tengiz project and the Sakhalin Island tender process. Problems remain involving taxes, bureaucratic foot-dragging, and fears of capitalist exploitation of Russian natural resources. Add to that the Yeltsin administration's slowdown in its drive toward a market economy, Russia's desperate financial plight, and rumors of another coup attempt by hardline Communists. This paper reports that all these factors, however, haven't dampened growing belief that the outlook for agreements on mutually profitable, long term petroleum deals involving billions of dollars has become more favorable