31-08-04

President Vladimir Putin said Russia would increase its oil exports this year.

Putin made his pledge at a three-way summit at his residence in the Black Sea resort of Sochi with French President Jacques Chirac and German Chancellor Gerhard Schroeder. The three leaders discussed their cooperation in the energy sector, with Putin pledging that Russia would increase its oil exports this year.

Russia is a major supplier of natural gas to Europe and a top exporter of oil. Government pressure against Russia's largest oil producer, Yukos, has pushed prices higher in recent weeks. Putin didn't address Yukos, but his pledge to boost exports won praise from Schroeder, who said it would help stabilize oil prices.

Putin was cited as saying that Russia expects to export 255 mm tons of oil in 2004. "Russian companies will continue increasing oil exports to international markets," Putin said.

In 2003, Russia exported 228 mm tons of oil. The country's total oil output for the year was 421 mm tons, upfrom 380 mm tons in 2002. Oil output for 2004 is seen at 450 mm tons.

In the first six months of 2004, oil output rose 10.3 % on the year to 223.5 mm tons, while exports went up 4.2 % to 110.2 mm tons, the Federal Statistics Service said.

Source: AP