The Russian Ruble at the Iranian Oil Exchange

Exerpt from Russian Petroleum Investor

Earlier this year, a special oil exchange opened on the Iranian island of Kish in the Persian Gulf to trade oil, oil products and natural gas. In the opinion of experts, the Iranian experience in creating the exchange is especially interesting to Russia because, first, it begins exchange trade in oil and oil products; secondly, it is possible that in the near future there will be a new Iranian- Russian gas exchange.

Iran is the second country in the region on oil production after Saudi Arabia, extracting nearly 22 million tons of oil a year. However, because of rigid state regulation, it cannot take an appropriate place in the global market, despite a convenient geographical location. According to the Minister of Oil Gholam- Hossein Nozari, the purpose of creating an oil exchange is transformation of Iran from an oil-producing country to an important player in the global market of oil and oil products. “Our purpose is to make oil and oil products trade more transparent, to strengthen competition and to attract solid investors, to become a part of the global market not only in the sphere of oil extraction but also in the sphere of oil trade,” Nozari declared.

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Kazakhstan Introduces Major Changes in Subsoil Use Legislation

Kazakhstan Introduces Major Changes in Subsoil Use Legislation

Excerpt from Caspian Investor by Inna Gaiduk

Kazakh authorities have not limited themselves only to a victory in restructuring Kashagan ownership. At the beginning of February, Prime Minister Karim Masimov suggested to terminate contracts in which subsoil development companies have not executed obligations, with the deposits returning to the state. Experts have regarded this action as an attempt to return most of large production companies’ shares to state ownership, clearly reflecting the recent Russian approach. First, the Ministry of Finance suggested imposing taxation on mineral extraction, already applied for years in Russia. Then the Ministry of Energy and Mineral Resources lobbied for tax amendments introducing oil export customs duties by January 1, 2009, another analogy to the Russian legislation.

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