Under the proposal, the Cabinet will have the power to designate any oil deposit as off-limits for development if it is near existing pipelines, roads and production facilities or holds at least 30 million tons in reserves, the ministry said in a statement.
Deputy Prime Minister Igor Sechin told OPEC ministers in December that Russia was considering measures such as setting up a reserve of oil fields as a way to adapt to changes in demand for oil, speaking after the prices took a steep dive. Energy Minister Sergei Shmatko said last week that it wouldn't be "thrifty" to hand out production licenses for easy-to-develop fields when oil prices are low.
The Natural Resources Ministry's plan has the status of a draft decree and will have to win the Cabinet's approval before it takes effect. The document's publication on the ministry's web site is the next step in the document's approval procedure, after Shmatko said last week that his ministry had submitted its proposals at the end of April.
Also on Thursday, the Organization of the Petroleum Exporting Countries decided to keep production quotas unchanged at its meeting in Vienna, banking on a year-end recovery in demand.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.