Oil industry to benefit from tax incentives, PM says

The Russian government is planning to improve the operation of the country's oil sector thanks to the introduction of new tax incentives in 2007, Russian Prime Minister Viktor Zubkov told a meeting of the intergovernmental council of the Eurasian Economic Community (EurAsEC) in Moscow today, RBC reports. He pointed out that Russia was carrying out reforms expected to result in the modernization of the country's economy and in an increase of its competitiveness. Zubkov added that Russia needed to boost investment activity and narrow the gap between imports growth and production rates. The PM also noted that the newly created development institutions, such as the Russian Investment Fund, Vnesheconombank, and special economic zones, were to play an important role in the development of Russia's economy.