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Kremlin concerned over Kiev inaction on oil refinery raid

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MOSCOW, October 30 (RIA Novosti) - A Kremlin source said Moscow was concerned about Ukraine's inaction over an oil refinery, which was raided October 19 as part of an ongoing row between Russian and Ukrainian shareholders.

A team of over 50 security officers raided the Kremenchug oil refinery, operated by Ukrtatnafta, a Russian-Ukrainian joint venture, early on October 19 to reinstate former board chairman Pavel Ovcharenko, dismissed in 2004. The raiders locked board members in an office and seized the company stamp and papers.

The source said hopefully Ukrainian authorities would "soon restore order and take the interests of Russian shareholders into consideration" at Ukrtatnafta owned by Russia's Tatneft and the Ukrainian state.

Tatneft, which supplies 80% of oil to the Kremenchug oil refinery, was forced to stop oil deliveries following the raid.

The government of Tatarstan has urged Ukrainian President Viktor Yushchenko and Ukraine's Cabinet to intervene in the situation as soon as possible. Tatneft described the incident as "a continuation of the corporate conflict" which has already been raging between Ukrtatnafta shareholders for several months.

Ukrtatnafta's supervisory board said in a statement that board chairman Sergei Glushko was a legitimate company head elected at a general shareholder meeting. The incident is expected to be discussed at a shareholder meeting set for November 15.

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