Russia to raise oil output by 20 percent

November 11th, 2008 - 7:25 pm ICT by IANS  

Moscow, Nov 11 (RIA Novosti) Oil production in Russia will grow by up to 20 percent, and natural gas by 42 percent by 2030 in line with Russia’s draft energy strategy, business daily Vedomosti reported Tuesday. The draft, prepared by several research institutes and the energy ministry, will be submitted to the government in January after discussions and approvals.

In August the economics ministry set a task of ending the economy’s dependence on raw material exports by 2020.

Currently fuel and energy accounts for about 30 percent of Russia’s gross domestic product (GDP), 50 percent of budget revenue, and 64 percent of foreign currency receipts, the paper said.

Under the draft strategy, the sector’s current share of GDP will remain unchanged until 2012. This will be a period of the “quantitative” build-up of investment and resources to create potential for the economy’s transformation”, the paper said.

For 2013-2020, the government plans a period of intense investment and innovation. During this period, the share of the fuel and energy complex in national GDP will drop to 25 percent, the paper said.

The period from 2020 to 2030 will see the economy’s transition to innovation and environment friendly and efficient power engineering and the share of the fuel and energy complex is expected to contract to 18 percent of GDP, the paper said.

The draft strategy pledges incentives to boost growth in private investment, as well as foreign capital and technology, which are expected to grow at least five percent in 2008-2012 and 12-15 percent by 2030, the paper said.

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