The State Duma has declared that the government's performance in implementation of production-sharing agreements (PSAs) was unsatisfactory. Such an assessment was provided by the State Duma Commission for Review of Legal Issues Related to Use of the Sub-Soil, headed by the First Deputy Head of the Yabloko faction Sergei Ivanenko.

At the briefing on October 12, 2001, Ivanenko informed the press about the conclusions of independent experts and, in particular, representatives of the US Trade Chamber. According to the experts, the government of the Russian Federation "has virtually caused huge damage to the state" as "the advantages [from implementation of PSA] have been squandered over recent years. The damage amounted from five to eight billion dollars and for the past year alone came to 800 million dollars," added Ivanenko.

He also said that in August 2000 the government had approved at its meeting the schedule for preparing the necessary legislative acts to finish the formation of the legal and normative

base in the field of PSA; it also determined the terms and those responsible, while the Ministry for Economic Development and Trade of the Russian Federation was charged with coordination of PSA work. "The implementation of the schedule has been frustrated," stated Ivanenko, explaining that this fact had also been determined by the parliamentary commission.

Ivanenko also stressed that the Head of the Ministry for Economic Development German Gref had failed to provide any coherent answer to the deputies as to the reasons for this development.

Ivanenko also drew the attention of the press to the fact that all the laws adopted by the State Duma on 28 deposits within the framework of the PSA "lie as a dead burden".

Consequently the commission adopted a decision to prepare an address of the State Duma to the President of the Russian Federation to point out to him developments regarding the implementation of production-sharing agreements, noted Ivanenko.

Expressing his personal opinion about this situation Ivanenko said that "today the government 'is addicted' to high oil prices and has lost its sense about the economy and interest in reforms has disappeared."

Based on Interfax reports

See also:

PSA Legislation