Energy Ministry posts forecast on capital investments

The Russian Energy Ministry has forecasted the volume of capital investments of $530bn to $620bn through 2020, the period of the Russian energy strategy, Energy Ministry official Vladimir Sayenko announced today at a conference organized by the Adam Smith Institute. He reported revenues of enterprises operating in the domestic fuel and energy sector would reduce by a factor of 1.5 before 2010. At the same time, the official forecasted positive outlooks for the domestic energy sector due to the launch of a full-fledged wholesale and retail energy market. He noted that natural gas prices would reach between $45 and $50 on the domestic market, and electricity prices will be $0.04 to $0.05 per kWh, which would correspond to the current price level in Germany.