STOCKHOLM, Jan 15 (Reuters) - Sweden-listed oil
firm West Siberian Resources (WSIBsdb.ST: Quote, Profile, Research) said on
Tuesday it had signed a preliminary agreement to buy Alliance Oil in a stock
deal valuing the Russian firm at about $1.5 billion.

West Siberian, which has its operations in
Russia, said payment for Alliance Oil would consist of around 1.75 billion new
West Siberian shares. Under the terms of the deal, Alliance shareholders would
own 60 percent of stock in the merged firm.

The firms said in a joint statement the deal
would create a vertically integrated oil company with stable access to crude oil
and operations ranging from prospecting and production to refining of petroleum
products.

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In today's world oil is becoming a major concern. The price of oil is skyrocketing. In this article we can take a look at how the oil problem is effecting Russia and what they are doing to cope.