28 Draft Product Sharing Agreements Between State And Investors In The Works In Russia

28 draft product sharing agreements between the state and investors are currently in the works in Russia, said Economic Development and Trade Minister German Gref at the Moscow session of the World Economic Forum on Tuesday. According to Mr. Gref, these agreements are prepared in a form of investment projects. They will be offered to companies involved in extraction of mineral resources and holding licences to do so, or sold at open tender to investors, who will then implement them. Mr. Gref mentioned that governments usually are not directly involved in implementation of product sharing agreements. Such agreements are commercial projects, in which the government is one of the sides, however it does not provide people who are trained and experienced in the area. Mr. Gref said that his ministry has been named the body in change of handling these agreements. Product sharing agreements are common in oil industries of some countries. A state and an investor, who receives the right to utilise a section of the underground resources under certain conditions, sign them. Some percentage of the mineral resources mined goes to the state; and the investor receives a major tax relief for the period of the agreement.