Instead of undercutting foreign goods, Russian producers appear to be using the tariff increases to raise their own prices.

Russian producers must receive 10,000 rubles a kilo - about $2.10 - to break even, according to an American Government analysis.

By 1997, Russian producers were exporting 60 percent of what they produced - compared with zero in Soviet times.

The pressure from Russian producers could lead to still higher tariffs or new subsidies at home in the short term.

BP is, however, the only foreign oil company with a direct stake in an existing Russian producer.

And now American companies fear the Russian producers are striking back.

That dispute was worked out, but the episode appeared to have given protectionist-minded Russian producers here the opening they were looking for.

A rise in oil prices is bound to strengthen the domestic currency, which may be seen by Russian industrial producers as less than good news.

The devaluation has led to a reduction in costs for exporters, and also for Russian producers as a whole.

The stations themselves will need investment if the Russian producer decides it wants to make them profitable.