The horror! The horror!
IMF Chairman Says Russia Guilty of “Resource Nationalism” Created: 12.09.2006 16:50 MSK (GMT +3), Updated: 16:50 MSK
MosNews
Chairman of the International Monetary Fund (IMF) Rodrigo Rato said on Monday, Sept. 11, that a trend to resource nationalism is gathering pace in Russia, Venezuela, Bolivia, Chad and Algeria.
Rato pointed out that, emboldened by high oil prices, the government of these countries are seeking more cash and control from multinational corporations that drill in their oil and gas fields. “Recent moves in various producer countries to change the taxes or terms of contracts of oil companies may raise government revenues in the short term,” the IMF official said, quoted by Reuters. “But this could backfire, as they create significant disincentives to new investment in oil production, thus ultimately affecting the governments’ long-run revenues.”
Rato called on governments of oil-producing countries to ensure their polices encouraged investment and spread risk between themselves and the firms drilling for oil.
Speaking of other matters, the IMF chairman said that Russia and some other oil exporters could benefit from more flexible exchange rates, which would help to contain risks of over-heating.
http://mosnews.com/money/2006/09/12/ratorussia.shtml
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