OREANDA-NEWS. Indian company Reliance Industries and state concern Gail consider possible construction of oil refineries in Russia. Indian industries want to be sole owners of future refineries. For now, there is no data regarding possible location, output of plant, neither there is info about any agreements with Russian officials.

According to Veles Capital analysts, Indian Reliance Industries and Gali India will be allowed to construct an oil refineries over the Russian territory. This will be profitable for Russian and India alike. For India companies  benefits are: export duties for petrochemicals are lower than one for raw oil, in addition to high qualification of Russian personnel; Russia will benefit from construction of refinery, as establishment will provide additional employment for local population, plus additional taxes. All the more important is the issue of negotiations for 100% ownership of the plants, where possible being anti-lobbied by large Russian oil companies, as they are interested in expanding their oil processing capacities by various means.

According to the experts, the expected location for construction of oil refineries is Russia's Far East, the end of East Siberia Pacific Ocean pipeline in particular. It is very convenient in terms of delivering raw material and transporting petrochemicals to India. In their opinion, the Russian side is also to insist on this location as "we all know Russia's government intention to develop Far East before APS summit in 2012." "It is too early to consider value of future plant as no solid place is chosen, however, expected costs may form 250 to 300 USD per ton of processed raw oil," the experts conclude.