Russia to focus on hydropower and nuclear power generation – presidential aide

December 24 - Presidential aide Igor Shuvalov said Russia would focus on the development of hydropower and nuclear power generation.

"Gas will be used in power generation only where there are clear-cut reasons to do so and no other fuels are available," Shuvalov said on the Russia TV channel Sunday evening.

He said: "A powerful impetus will be given to coal-fuelled power plants, which will create new conditions for investment in other industrial sectors."

Shuvalov said the Kremlin's idea does not foresee giving foreign partners access to the mining sector in return for providing Russia with access to the distribution systems of the partners' countries.

"We do not proceed from the assumption that they [foreign partners] should be allowed to participate in mining in Russia in return for giving us access to their distribution systems. We believe that principles of investment should be equitable and mutually beneficial," Shuvalov said.

He said that some governments of Russia's partners in the G8 and other countries lobbied for the interests of their private companies, "believing that they possess advantages for investing in oil and gas production in Russia, and refusing to admit that Russian companies may have the ambition to invest in their markets."

According to the official, during the discussion of the energy declaration at the G8 summit last year, "the issue was discussed, in an unpleasant mood, with our partners, who eventually saw that Russia's approach was objective and justified."

Shuvalov also said that "Gazprom's ambitious plans scared our partners" in 2006, but the Russian authorities explained that certain limitations imposed on foreign owners had been lifted and the share market had been made completely transparent.

The presidential aide said the Russian authorities explained their "desire to see Gazprom as a global player, which would benefit global economic stability, Russians, as well as voters in the G8 countries where Gazprom would invest."

"Our arguments have been accepted," he said.

Speaking about the spotlight on environmental requirements in Russia, Shuvalov said: "Whether Russian companies and international corporations like it or not, Russia signed the final document of the G8 summit last summer, and it now has to apply environmental requirements to all mining companies more stringently and consistently."

Shuvalov said Russia's presidency of the G8 this year was a success.

"We are passing the baton to Germany, which will hold the rotating presidency as of January 1, 2007," he said. "We are completing our presidency quite successfully."

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