Russia's oil industry will not be nationalized, natural resource minister Yury Trutnev said. He added that while the country should protect its strategic interests, it does not mean government will completely ban foreign companies from taking part in auctions for licences for developing natural resources.
Foreign companies may partake in the development of mineral resource fields, if the controlling stake belongs to Russian entities. Also, Trutnev said domestic companies operating in Russia through offshore subsidiaries would be treated as foreign ones. It is more profitable for government to sell licenses for a natural resource field to companies that pay taxes to the Russian budget.
Trutnev stressed Russia needs foreign investments more than ever to ensure sustained oil extraction growth. Recently, government announced it would ban foreign investors from buying Russian resources. Trutnev’s statement is meant to clarify the issue.