MOSCOW, June 20 (RIA Novosti) - Russia's largest independent crude producer LUKoil [RTS: LKOH] plans to place up to 25% of its oil production and some 30% of refining capacities abroad, the company's vice president said Tuesday.
Speaking at an annual investors' conference organized by Renaissance Capital, Leonid Fedun said the company would earn 25-30% more in revenues than if all production units were in the country.
Fedun said LUKoil was planning projects in Central Asia and Kazakhstan, in the Middle East and Latin America, as well as West Africa.
He said taxation in Russia was "the toughest" and tax rates abroad were much lower. "That's why we are going to these regions," Fedun said.
Speaking about prospects of buying oil refineries in eastern Europe, Fedun said LUKoil had suspended investment in the region. "In 2007-2008, the investment attractiveness of capacities in eastern Europe will be much more interesting for us than now," he said.
Fedun said the issue was highly politicized at the moment, but added he hoped partners in the region would assess the economic attractiveness of such projects.
Fedun also said LUKoil was considering building a new oil refinery in Russia.
