Unlike the gas industry, the oil industry in Russia is fairly fragmented. The wave of privatization that began in 1992 spawned a long list of oil companies large and small. Some of the larger firms are Lukoil, Yukos, Shidanko, Surgutneftegaz and Sivneft. Beginning in 1995, the Russian government began to sell its shares in major petroleum companies to address budget shortfalls. These events quickly sapped the government's influence on the oil industry, and oil companies began linking up with banks to form new industrial and financial groups. Although nowhere as powerful as Gazprom, internationally many are nonetheless known as "giant companies." In 1997, the Petroleum Intelligence Weekly listed several Russian oil companies in their global top 50.
Boasting the greatest productive capacity of Russia's oil companies is Lukoil. In 1996 Lukoil was ranked 14th in the world, with crude-oil output of 51 million metric tons. In terms of crude-oil reserves, Lukoil ranks 11th worldwide. Along with the gas industry, resource-rich Russia's oil industry puts the country in a position of considerable influence over the world economy. The development of resources may hopefully provide the right scenario for the opening of the NSR.
The example of Gazprom shows that a profitable company, or at least one with a solid industrial base, can attract plenty of investment from overseas. On the other hand, unreliable information, unstable governments and incessantly shifting regulatory frameworks conspire to drive foreign investors away. In either case, without a doubt a clear assessment of trends in the energy business in Russia is important in grasping what the future holds for the NSR.
(2) Marine-fishery resources
Russia is keen to export marine resources from the Arctic, but the extent of development of these resources is unclear. The region is rich in the kinds of seafood favored by Asian peoples. Possibility of considerable amount of catch exceeding the personal consumption level of local indigenous peoples and its impact assessment on the global ecosystem will be a very interesting subject of further inquiry with circumspection. In particular, in the Sea of Okhotsk in the Far East, reckless and haphazard fishing is depleting the marine resources of this region at an alarming rate, raising the danger of extinction of many species.
Japan's most important import from Russia is seafood. Every year Japan consumes over US$1 billion of Russian seafood, accounting for close to 30% of all imports from that country. Crab, shrimp, roe and walleye are prominent. Unfortunately this rather excessive trade will not be desirable from the point of view of the environment, and should be tackled in meetings between the two countries' representatives at an early date. Here it must be borne in mind that a wide discrepancy exists in the imports and exports between Japan and Russia.
(3) Forest resources
Forest products are a major source of export revenue for Russia and Southeast Asia alike. Russia's main export in this field is pine logs. Although in 1997 Japan's lumber imports from Russia were second only to those from the United States, in subsequent years Russia's share of the Japanese market has declined. Whereas the forests of Southeast Asia and North America are close to exhaustion, the Russian lumber business undoubtedly has tremendous potential for export of forest products to Japan. At the same time, the destructive potential to the environment of the northern hemisphere is considerable. Every year forest fires devastate vast expanses of the Siberian taiga, polluting the air with huge releases of carbon dioxide, possibly causing severe damage to Siberia's permafrost. For the preservation of the environment as well as this precious resource, reckless deforestation must be avoided in favor of responsible, planned tree harvesting and the implementation of a careful reforestation program.
