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a bend – изгиб, излучина crude oil – сырая нефть

on an equal footing – на равных (основаниях) a counterpart – партнёр

receipts – поступления

Sakhalin-2 Poisons the Environment

Oilfield work on the Sakhalin-2 project has been suspended due to environmental damage inflicted by foreign companies. This Project is wholly owned by global foreign firms: 55 percent of it belongs to the Royal Dutch Shell, 25 percent to the Mitsui, and 20 percent to the Mitsubishi. But Russia is probably reconsidering its policies regarding foreign investors operating under production sharing agreements.

September 21 saw a ghastly scene: The coast of the Aniva Bay (the Sea of Okhotsk) was covered by dead fish, crabs, and jellyfish over a length of 10 km. In this area the Shell’s subsidiary, Sakhalin Energy, is building a liquefied gas plant. For three years in a row this Company has been building an oil pipeline, which crosses 1,000 streams and rivers, and a cargo terminal. From the outset, this Project was ecologically perilous, as the natural bends of the rivers were not taken into account. The Aniva Bay and rivers were polluted by severe erosion and dirt. The existence of the West Pacific population of grey whales was put under the threat.

Russia signed the production sharing agreements in the mid-1990s. Besides Sakhalin-2 has two other agreements: Sakhalin-1 (participants are Rosneft, the US’ Exxon, and India’s ONGC), and the project Kharyaga (France’s total). That time crude oil cost $16-18 per barrel, and preferential tax treatment was provided to the investors. Moreover, the tax payments come to only $20 million under those agreements.

Today the Russian companies are strong enough to develop all kinds of deposits, and to compete in tenders on an equal footing with their western counterparts. Also, the present price of crude oil amounts to about $70 per barrel. The ordinary tax (50% of receipts) on Sakhalin-2 project would have brought the state $300 million to $400 million annually. So, thanking to the present investment climate and the favorable world market situation, Russia could do without production sharing agreements.

Ex. 25. Read the statements and comment on them.

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1.Under the agreement of Sakhalin-2, the foreign party is to be totally compensated for its expenses. After that the oil output is to be shared. Is this fair or unfair for the interests of the Russian Federation and its citizens?

2.According to the agreement of Sakhalin-2, the investors must receive a full refund of his expenses. The initial funding for this project was put at $8.5 billion. Why did the Sakhalin Energy raise the issue of increase its expenses on the project from $12.5 billion to $20 billion?

3.Under this agreement, no less than 70 percent of the volumes of work and supplies should be performed by Russian organizations. Their share is no more than 30% in reality. Is it a mistake made by negotiators? Could the Russian companies exploit hard-of-access deposits in the middle of 1990s? Is it simply a case of violation of legislation?

Ex. 26. Speak on the topics:

1.Economic development of the Russian East is a matter of social necessity, politics or inevitable phenomenon.

2.It is easy (hard) to run business in the Far East.

3.Only big companies (small businesses) can be a success in the Far East.

4.You are sure you could be able to establish your own business and make it run well in the sphere of tourism (oil processing, optional education, car-building, trade, publishing, food production, etc).

5.Problems of doing business in the Far East (geographical, ecological, climatic, connected with raw materials, transportation, workforces, tariffs, money, taxes, etc.)

V.HOW TO COOPERATE IN THE FAR EAST

Ex. 1. Read the dialogue, translate it from English into Russian, and answer the question at the end.

Words to know:

to enhance – повысить, усилить implementation – внедрение

to forbid doing business – запретить заниматься бизнесом forthcoming reform – грядущая реформа

legal entity – юридическое лицо

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design bureau – конструкторские бюро

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Academician: _______.

Ex. 2. Read the definitions and match them with the given phenomena.

Innovation, investment, know-how, invention, implementation

1.Sum of money put in business for profit.

2.Something created or designed not existing before.

3.Bringing in novelties, making changes in something. Something new that is introduced.

4.Knowing how to do something, practical knowledge, technical expertness or knowledge of methods. Practical ability through experience.

5.An undertaking, agreement, promised or carried out.

Ex. 3. Translate the sentences from Russian into English.

1.Специалисты принимают меры по внедрению технологии по утилизации жидких (liquid) радиоактивных отходов.

2.Секрет приготовления этого лекарственного препарата – наше «ноу-хау».

3.Мы готовы продать патент на это изобретение серьёзному производителю из РФ.

4.Инновации в производстве и оказании услуг сегодня – это получение прибылей и привлечение инвесторов в будущем.

5.Инвестиции предлагаются многими отечественными и зарубежными компаниями, но прежде некоторые проекты потребуют тщательного анализа.

6.Наша компания добилась больших результатов при поддержке инвесторов.

Ex. 4. Read the texts and give them appropriate headings.

Text A

Nowadays both researchers and businessmen speak much about cooperation between researching centers and enterprises. The major goal of such relationships is to create a production infrastructure, which consists of the technology of transferring a developed research project into its industrial model with technical and technological