While Russia is rich in oil and gas resources, the Russian government in 2008 had to introduce a US$4.2 billion tax cut at mid-year to reverse declining production after a period of growth from 1998 through 2004. "From the oil company's perspective, the government was taking all the revenue from high oil prices, leaving them will little to invest in new production, so there was nothing to offset declining production from aging fields in Western

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