Oil exports from January to May totaled 46.42 million tons, slightly ahead of 45.2 million tons in the same period in 1994, the ministry said in a statement. Gas exports rose 10.7 percent to 60.68 billion cubic meters from 54.83 billion cubic meters last year, the ministry said.
Together, the sales of Russia's richest resources earned more than $2 billion in revenue, Shafranik told a news conference -- "as much hard currency as during all 1994," reflecting higher world prices.
The minister said, however, that investment is at "absolute zero" and urged steps to maintain production.
Figures released Monday show 157.16 million tons of oil was produced from January to June, down 2.6 percent on the same period last year. Gas production also was down, at 304.6 billion cubic meters, a 3.4 percent fall.
An earlier Fuel and Energy Ministry report said that about 27.2 percent of all Russian oil wells are lying idle for want of cash to pay for maintenance. Refineries are working at less than 55 percent capacity and many farming regions and remote northern areas are suffering fuel shortages, the report said.
In a move to improve the situation Shafranik called for targeting tax legislation for oil companies on a regional basis to account for varying production costs.
"It is absurd -- 42 percent of oil fields in the Tyumen region are unprofitable," he said. "But as soon as we change the tax system, investments will be immediately coming into the industry."
"Russia does not have the right not to invest in the energy sphere," he added.
Shafranik also said Russia's strategic objective is to increase its annual crude oil output to 400 million tons by 2005 from 310 million tons last year.
"In one or two years' time, Russian oil producers will be ready to compete with any Western company in any part of the globe," he said.
Shafranik also said a long-awaited decision on the reorganization of Rosneft, Russia's largest oil producer, will be made in two weeks. The most contentious issue is whether Purneftegaz will be folded into Rosneft or meet another fate.
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