Rusneftegaz can announce that we have devised a new, five-year investment program for the period between 2015 and 2019, which is currently in the process of being implemented by our management. This current plan has been significantly expanded from the previous version, which ultimately resulted in substantial sums being expended on both new assets and infrastructure for our petroleum activities. However, whilst the latest scheme shall continue to develop our domestic fuel production business, it also accounts for major structural revisions to our broader commercial strategy, which will be disclosed at a later date. These changes should yield considerable growth for all our existing undertakings, in conjunction with a wider expansion into new areas of operation. Thus, Rusneftegaz can divulge that for the first time in our corporate history we have apportioned a budget to fund speculative proposals until the end of the decade. Initially, a small amount of the allocated capital will be utilized to conduct further research on hypothetical projects, with the majority of the monies being preserved until a suitable course of action becomes available. In response to this statement, the Deputy Chief Executive Officer, Aleksandr Filyurin, stated:
“I am very pleased that we can publish this comprehensive plan, which will enable us to fulfill our growth plans long into the future. I have only worked here for a few months now, but I have been very impressed by what I have seen so far. However, in this business, we cannot stand still. In fact, staying the same in this industry is the same as regressing. That is why it is crucial for us to expand on what we are already doing. Now, I understand that Rusneftegaz has tried to expand before, and there may be some trepidation because of it, but this time it will be different. We will focus our efforts in areas where we already have expertise. We will not repeat the same mistakes as our predecessors. Obviously, before we arrived, there were already plans to invest in new oil equipment, but we wanted to build on this as a basis, rather than thinking that was the final set of plans. That is why in a few weeks time we will be setting out our proposals to transform Rusneftegaz. I hope that the period of our leadership will be marked by continual success and growth, and I hope that all of those that work for Rusneftegaz will join us in making these efforts.”
The investments that are planned over the next five-year period exceed, in terms of value, our entire expenditure on assets since the year 2000, including when inflation is accounted for. This is partially due to the retention of all the proposals made by the previous administration to develop our petroleum business, which will enable Rusneftegaz to maintain continuity in this division of our organization and continue its growth in a financially sustainable and organic manner. The new scheme also accounts for the potential and ongoing challenges of acquiring infrastructure and equipment from certain countries, namely those in Europe and North America. Whilst our management does not believe there will be any deterioration in the geopolitical situation in the near or distant future, the board of directors has elected to prioritize the purchase of goods and services of Russian origin. Although our company shall always endeavor to procure the best and most suitable products available, it is necessary to consider the practical implications of sourcing beyond our borders. For instance, any further restrictions placed on importing or exporting to or from the Russian Federation could impact our capacity to have our equipment and assets serviced and maintained by companies located in foreign nations. By making this commitment, Rusneftegaz is also supporting Russian businesses and industry at this challenging time, befitting our status as a large and prosperous enterprise. Despite the fact that our organization has no intention of distributing this document beyond a small pool of executives, stakeholders and affiliates, the matters that have been set forth in this article should yield a significant expansion in revenues and profits by the end of the decade. As a result, we will not be accepting queries regarding these updates, and will disclose further information at the relevant time.
