#7 - JRL 7229
RUSSIA CANNOT INCREASE OIL EXPORT UNLESS TRANSPORT SYSTEM IS MODERNISED

ST. PETERSBURG, June 18, 2003. /From a RIA Novosti correspondent/--Russia's underdeveloped infrastructure prevents the country from increasing its oil deliveries to the foreign market. Thorough modernisation of the transport system is the solution to the problem, Russian Minister of Economic Development and Trade German Gref stated at the international economic forum held on Wednesday in St. Petersburg.

According to him, in 2003 the Russian oil pipeline transport has been operating at 100 per cent, with Russia being the only country where it functions "in such a intensive regime".

German Gref stressed the need for serious investments to development of the pipeline transport and stated that it must be done in the near future. According to the Russian minister, the pipeline transport system will be developed in three directions: eastern, western /the Baltic pipeline system/ and deep-sea ports in Russia's north.