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Private Oil Company In Tatarstan Shuts Down

KAZAN, Russia -- A private oil-producing company in Tatarstan has closed due to severe financial problems.

Bolgarneft board of directors Chairman Vasily Mukhin told RFE/RL's Tatar-Bashkir Service on December 1 that the abrupt decrease in the price of oil "made it useless to sell it and there is currently no space to keep the produced crude oil."

Experts say that smaller private oil companies in Tatarstan will need federal financial support to survive the global financial crisis.

Bolgarneft was known as one of the most successful private oil companies in Tatarstan, but the first one to officially announce its closure.

World oil prices have gone from more than $150 per barrel in July to about $50.