To: Ilaine who wrote (106376 ) 6/4/2001 1:28:30 PM From: Ilaine Respond to of 436258 >> Yukos Upset by New U.S. Energy Strategy By Harry Dunphy The Associated Press WASHINGTON — Russian energy companies are disappointed that U.S. President George W. Bush has not included them in his energy strategy, one of their leaders said Friday. Mikhail Khodorkovsky, chairman of Yukos, Russia's second-biggest oil company, also said the Russian business community expected a lot to come out of a summit meeting in two weeks between Bush and President Vladimir Putin in Slovenia during the U.S. leader's European visit. "It's no secret some people in both countries are looking backward" when it comes to U.S.-Russian relations Khodorkovsky said at the National Press Club. "We large Russian energy companies are interested in seeing an end to this kind of thinking and looking forward." Speaking about the Bush administration's energy strategy, Khodorkovsky said he was "disappointed that this policy does not include Russia as a player. Russia is regarded as a country that can only cause problems." He said while distance precluded Russian oil shipments to the United States, there was no reason why a bookkeeping system to trade oil called swaps could not be established. He said he hoped that when Bush and Putin set the course for future U.S. relations at their meeting trust will develop between them. Khodorkovsky and other business leaders who met with Putin on Thursday, said the Russian leader realizes his country's future depends on further integration into the world economy. Khodorkovsky, 37, is often identified as part of a coterie of a tycoons who dubbed themselves Russia's "oligarchs." They acquired companies for rock-bottom prices through privatization sales in the 1990s. He is attending a conference of American and Russian business leaders at which he expected to have informal contacts with Bush administration officials. Khodorkovsky presided over some of Russia's worst shareholder-abuse scandals in the 1990s, including the now defunct Menatep bank. Menatep reportedly came under investigation in the Bank of New York money-laundering scheme, but has denied any wrongdoing. Yukos has 11.4 billion barrels of proven reserves, putting it in second place behind LUKoil and had net income in 2000 of $2.5 billion. It plans to raise production to 1.5 million barrels of crude oil a day by 2005, output comparable to OPEC member Libya. Production this year is expected to be 1.16 billion barrels per day.<<themoscowtimes.com