MOSCOW — A set of measures concerning taxes in the oil sector needs to be taken by the end of this year, Russian economic development and trade minister German Gref has declared at today's cabinet meeting. He commented that previous sources of Russian economic growth, such as increasing oil and gas exports, had run dry, which badly affected GDP growth early this year. As such, growth in exports dropped to 6 percent in the first half of 2005 against 11 to 12 percent in the same period in 2004.

Gref points to stagnation in oil exports, which grew 0.5 percent only in the first six months of 2005. Oil production growth decreased as well in the H1, having advanced 2.7 percent against 10.5 percent in the same period in 2004. This fall, in addition to the YUKOS factor, is also linked to the taxation system in the oil sector.

The official also said that the average price for Urals oil totaled $47 per barrel on January to July in 2005. The ministry expects this figure will amount to approximately $48 per barrel by the end of this year, thus exceeding the 2004 average price by 40 percent.