Licences From Companies Not Honouring Obligations Within Product-Sharing Agreements Can Be Revoked

Russian Minister of Economic Development and Trade German Gref does not rule out that the companies not honouring their obligations on project developing and financing within the framework of the product-sharing agreements (PSA) may have their licences revoked. Talking with journalists Gref stressed that already in June all investors having licences for developing hydrocarbon deposits within the PSA framework received notifications in compliance with which they had had to submit their proposals on developing and financing projects to assimilate deposits. In response, out of 27 companies having such licences only 4 sent their proposals. According to German Gref, the companies will have time till the New Year and then it is not ruled out that their licences will be revoked. Gref stressed that the government develops projects on each deposit irrespective of investor activities.