Russia: Privatisation and co-venturing in the Russian oil sector

As foreign investment in the Russian oil industry is now being permitted for the first time, many international companies are experiencing difficult and unreceptive conditions. This article suggests that the Russian domestic oil industry must seek to restructure itself in an orderly fashion, so that foreign investors are treated on a rational, open and fair basis. However western oil companies will need, alongside these changes, to invest in existing operations or actively seek the participation of local partners if privatization and co-venturing are to be a success. (UK)