Russia will continue to expand the output and export of oil and natural gas and expects to ship 50 million tons of oil annually to the United States, President Vladimir Putin said Saturday.

"We will step up the extraction of oil and gas, increase energy exports and expand cooperation with the leading companies, including US ones, on our continental territory, on the Barents Sea shelf, on the Sakhalin Island and other territories," Putin told a delegation of leading US businessmen in St. Petersburg, the Interfax news agency reported.

A joint report by Russian and US energy and economy officials, which is expected to be finalized by the end of this month, will present "specific projects on selling Russian liquefied natural gas (LNG) to the United States, increasing Russian oil exports through developing new deposits and boosting its transport infrastructure," Putin said.

Under those plans, "the United States, without additional investment, could import 50 million tons of Russian oil every year," Putin said.

Russia announced plans in October to ship 37 million tons of LNG to a terminal in Mexico over the 20 years starting 2008 as part of an arrangement to channel LNG from the Sakhalin island in Russia's Far East to the United States.

The Sakhalin-2 project has reserves of some 150 million tons ofoil and 500 billion cubic meters of gas.

The Russian president welcomed foreign investment and promised support "at the highest level" for the foreign investors.

"We will formulate clear-cut rules on how foreign partners can enter those sectors where restrictions exist for national securityreasons," Putin said, adding institutional reforms will continue, primarily in the judicial and banking systems.

"We will also work to strengthen protection of property rights,including intellectual property," he said.

Source: Xinhua