The key oil-industry production-sharing law rejected by the upper house of Russia's parliament last week may still be approved this term, Federation Council representatives said Thursday.


"I am sure it will be approved during the current session," said Alexander Titkin, deputy head of the council's budget committee and an ardent critic of the first draft of the law. "But only after major corrections are made."


Billions of dollars in foreign investment in Russia's energy industry are riding on passage of the law, which gained only 64 of the 90 votes needed for passage in the Federation Council on Oct. 4. Deputies suggested creating a reconciliation commission that will work with State Duma representatives to iron out differences in the two chambers' versions of the law.


After meetings begin, it may take from one to three months before the law is returned to the council for a second reading, said Marina Savchenko, an expert with the upper house's budget committee, which led opposition to the law.


"There is not much time left, but there is a big chance that it will be approved soon, although it is a very difficult law," Savchenko said.


Titkin said he supports the reasoning behind the law, but not some of its specifics.


"We need this law badly because it opens big opportunities for resources development," Titkin said. "But we need to fix a number of things in the law."


Among the deputies' major concerns are clarifying the decision-making process involved in production-sharing agreements.


"It is not clear in the law who is responsible for making major state decisions concerning hundreds of billions of dollars," said Federation Council member Yury Boldyrev, who led the opposition to the bill. "We want to make sure the agreements signed will serve Russia and will not depend on a ceratin government bureaucrat."


Boldyrev, who is a member of the reconciliation commission, said the council suggests a number of new articles be included in the law.


"The law should say that tenders have to be held publicly on an open competitive basis and be independent from any type of bureaucracy," he said.


Titkin cited "one major ridiculous thing" in the version approved by the Duma.


"It says that if an agreement between the government and an investor contradicts the Russian laws, this agreement is still legally valid," he said. "We should put Russian legislation higher than these agreements."


Titkin said the law should not be interpreted only as a law good for foreign investors. "In fact the law is as good for local investors as for foreign investors," he said. "This law should defend all participants in a deal and leave no holes for corruption."


"We hope the law will be approved soon," Boldyrev said. "This is one of the key laws that have been prepared during two years of our work. It is very important that it's adopted. Its approval may determine the country's future for up to 50 years ahead."