Sergei Ivanenko: Due to the government`s inaction with production-sharing agreements, the government has defaulted on $10 billion over the past five years Press release, 12 October 2001 The objective of Sakhalin-2 PSA was to define the conditions for hydrocarbon exploration, development, production, processing and transport by replacing existing tax and licensing regimes with a contractual agreement that would remain effective for the life of the project. After Sakhalin-2 PSA, the Russian Federation retains the sovereign ownership of oil and gas deposits and Sakhalin Energy invests the necessary funds for exploration and development. STREAMLINE PRODUCTION-SHARING LAW, U.S. PETROLEUM BOSS CALLS RUSSIA Pravda.ru, October 29, 2001 (Archives) A streamlined law on the distribution of production will increase foreign investment in Russian fuel development, said Glen Waller, head of external relations for the Russian office Exxo Mobil, at a roundtable of the World Economic Forum in Davos, Moscow. Sergei Ivanenko head of the parliamentary committee responsible for the legal issues of the production sharing agreements (PSAs) The Tyumen Oil Company and the administration of the region decide how to share the profit of the Samotlor-Express oil extraction, August 29, 2001 The Siberian Research Centre on behalf of Tyumen Oil Company has submitted to the Tyumen administration a draft production-sharing agreement for oil production in the uvats sector. The profit-sharing item is one of the most important items in the agreement. The investor receives 80% (the Tyumen Oil Company in this case), and 20% go to the federal and regional budget, as well as the budget of the Uvatsk area (the share in this case is not yet defined). The economic department of the regional administration has passed its findings on to Deputy Governor Vladimir Yakuchev, writes the Tyumenskaya Liniya news agency. A company always signs an agreement so advantageous that it is part of the history of the company and is analyzed for years in business school textbooks. In 1994, a consortium of foreign oil companies known as the Sa sachhalin Energy Investment Corporation (SEIC) believed that it had signed precisely such a contract with the Russian government for the development rights of Sakhalin-2 oil and gas fields in the Russian Far East (RFE). Former SEIC CEO Steven McVeigh claimed in a Harvard Business School case study 11 years later, Russian President Vladimir Putin summoned the CEOs of SEIC`s remaining partners – Shell, Mitsui and Mitsubishi – to the Kremlin and forced them to sell a controlling stake in Sakhalin-2 to Gazprom. Russia`s state-owned gas company.