Moscow (Platts)--14Jul2008

Energy ministries of the Group of Eight countries expect to meet by the
end of the year to develop financial mechanisms for mutual energy efficiency
efforts, Russia's deputy energy minister Anatoly Yanovsky said Monday.

"The group is to meet at the deputy-minister level by the end of the year
to prepare proposals on mutual financing of work aimed at raising energy
efficiency and use of existing international financial mechanisms for that
purpose," Yanovsky said.

The deputy ministers will determine a form of an organization to be set
up for coordinating the efforts in the sphere and the ways for its financing,
he said.

In early June, after their meeting in Aomori City, northern Japan, the
ministers from G8 countries, plus China, India and South Korea said they would
look to improve energy efficiency and promote the use of other energy sources.

The ministers said they would seek "to substantially improve energy
efficiency, to promote non-conventional oil and alternative energy resources
and to diversify supply routes."

Earlier this month, the International Energy Agency, energy adviser to
the world's 27 developed countries, including seven of the G8 members,
released detailed recommendations to the G8 on 25 areas which, in its view,
held great potential for improving energy efficiency.

In the global industrial sector alone, the IEA report for the G8 leaders
says, application of proven technologies and best practices could save 18-26%
of current energy use.

Yanovsky said it was too early to speak about concrete steps for Russia
to undertake within the energy efficiency program but said the ministry was
"sure that in long-term prospect, the measures would bring [positive] effect."
He also said that although Russia's economy grew some 6%-6.5% last year,
the consumption of primary energy resources rose only by 1%.
"This is a very high indicator, although we are much behind other
countries in the energy efficiency," he said.

Speaking about global warming issues, Yanovsky said that irrespective of
how Russia's economy might develop until 2020, his country is unlikely to
exceed the 1990 level of emissions by that time. "We are absolutely sure in
that," he said.

Yanovsky added that currently Russia's emissions are some 30% below the
country's obligations on the emissions level.