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BBC MONITORING SERVICE: Russian companies predict gloomy future for Sakhalin-2 project

11/11/2006 10:30:11 AM EST

Text of report by Russian RBK TV on 11 November

[Presenter] The construction of oil pipelines on Sakhalin is being carried out without the required package of documents, the head of one of contracting companies has said at the congress of the Russian Union of Oil and Gas Industrialists, which is being held in Moscow.

Investors promised that drawings, schemes and financial estimates for the Sakhalin-2 project would be made available after the launch of the project. However, they have failed to keep their promise. Now, builders do not rule out that the implementation of the project will be suspended. The cause is simple: the Sakhalin-2 project is sustaining losses. The funds allocated for the construction have long since been used up. Contracting companies continue working at their own expense and have to redistribute funds meant for other facilities. However, even this is not of much help. Soon a staff problem is expected to arise. Workers’ wages have already been decreased due to a lack of funds.

[Valentina Belyayeva, captioned as general manager of construction company] When we signed the contract, the project did not exist. We signed the contract for two years. Now it is to be prolonged for another year while not a rouble has been added to boost the construction. We cannot work for free.

Source: RBK TV, Moscow, in Russian 1200 gmt 11 Nov 06

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