"There is a major struggle taking place between all of the participants to the project," Golden Gates' consortium director Alexei Barukov said in an interview.
The consortium includes French Banque Paribas, the St. Petersburg oil district and the St. Petersburg mayor's office.
The $60 million Golden Gates proposal calls for construction of terminals at the port of St. Petersburg, at the east end of the Baltic Sea's Gulf of Finland, to increase oil handling capacity to 7.7 million tons annually from a current 2.2 million tons.
Western banks, investors and local officials are seeking a common language to widen the door for Russian oil exporters with their eyes set on foreign markets.
But the consortium set up to put steam in the project has been bogged down for nearly two years in a frustrating web of quarrels over financing and ownership.
Barukov said the partners were battling each other over how much, if any, foreign ownership would be allowed of the project.
Banque Paribas officials in Moscow could not be reached for comment.
Adding to the confusion are questions over how the terminals would coordinate activities with St. Petersburg's own port, Russia's largest shipping facility.
The proposed berths would stand next to the port's grain, coal and dry cargo terminals and have access to rail transport networks.
But directors of the privatized facility, which handled 15 percent of all Russian imports and exports last year, have been kept at arm's length.
"Sadly, the port didn't realize the importance of this proposal when we first approached them in 1992," said Igor Sorokin, a port analyst at the mayoral finance committee.
St. Petersburg mayor Anatoly Sobchak trumpets Golden Gates as an investment jewel that could reshape the shipping landscape of northern Europe.
But local officials have yet to decide how and when to allot land for the project.
Confusion over a separate proposal to construct a new port near St. Petersburg, in Ust Luga, with an annual handling capacity of 40 million tons and oil berths, hasgiven investors reason to think twice.
"The European Bank for Reconstruction and Development is looking at Golden Gates, but it's hard to say when and if any money will come," Barukov said.
The delays have left Russian oil exporters howling with protest. After the 1991 collapse of the Soviet Union, they were forced to pay for expensive outlets in the independent Baltic states to send oil and oil products westward.
Russia exported about 83 million tons of oil in 1993, more than 10 percent of it through Baltic outlets.
Barukov said consortium participants could cross a threshold when they tried to reach a compromise in coming months.
"The more this project is delayed, the more money everybody loses all round," he said. "The only clear thing is that the Golden Gates need to be opened."
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.