President of OJSC “NK “LUKOIL” Vagit Alekperov said in an interview to Vedomosti daily, “Unfortunately, today we and our colleagues including those from oil-richest countries face another problem such as sharp increase in prices for equipment and services. We have just received a document from our pipe manufacturers. They said they would raise prices by 15-20 percent. What does it mean? We signed contracts for a year and half year with price formula. And 3-4 months later they offered a higher price! We believe that it is unfair; it is a dictatorship of some companies in the Russian Federation. They were give overprotection:  no pipe imports from Ukraine and China. And now they dictate their rules. These restrictions should be lifted or export duties imposed. So that the Russian market would be a priority market to them, like to us”.  

  

The Coordinating Council of oil and gas equipment users that includes procurement executives of Gazprom, Gazpromneft, SIBUR, Slavneft, RussNeft, Surgutneftegaz, Rosneft, TNK-BP and other oil producing companies has made the following statement, “The oil and gas industry is the main customer for a large group of Russian manufacturing companies. Specifically, the industry consumes more than half of pipes supplied by Russian plants.  In recent years, there emerged a persistent trend for reduction of purchases of imported  equipment and pipes, and oil and gas producers expanded the use of competitive domestic products.  However, today the oil and gas producing companies face a sharp increase in prices for tubular goods. Domestic pipe manufacturers intend to increase prices for their products by 20 percent. Suppliers attribute  the dramatic price increase to the rising cost of raw materials. The Coordinating Council is concerned over the situation that may affect implementation of oil companies’ production programs, and finally lead to reduction in equipment purchases”.