How did the economic situation impact the services sector in Russia last year, and Eurasia Drilling specifically?
The main implication for the sector and for Eurasia Drilling was a reduction in the volume of jobs performed, and a small readjustment of pricing structures. Financially, companies working in Russia that report in US Dollars or Euros were affected by the devaluation of the rouble, which naturally impacted companies such as EDC, who are listed. At the end of 2008 and the beginning of 2009, there were large concerns throughout the sector, but as the oil price stabilised and capital expenditure started to return amongst the big oil and gas players, it meant that 2009 was not as bad a year as had been anticipated. I cannot say that Eurasia Drilling was completely ready for the crisis, but the company took reactive steps in order to reduce the impact of the decrease in sales volume. For example, the capital expenditure programme was scaled back; an overhead reduction strategy was put in place; we made some changes to the company’s personnel structure, and reduced expenditures on subcontract
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