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Subsoil law: fundamental reform abandoned

Overview

Marked slowdowns in oil and gas output growth – even combined with this year’s oil price stabilization – have not taken the shine off Russia’s strong GDP growth. Surging domestic demand has seen to that. But in the longer term, overall economic performance – not to mention the valuation of leading Russian stocks – will remain highly dependent on output volumes in the natural resource sectors. This depends, in turn, on the scale, pace and effectiveness of new capital-intensive...

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