Plans by Rosneft to build an oil refinery in Chechnya have been postponed for the long term, North Caucasus Affairs Minister Lev Kuznetsov told journalists.

"Rosneft hasn't yet made a final decision on implementation of this project. It might even be said, unfortunately, that the implementation plans have been put off for the long term," he said.

"Production volumes in the region are falling, the quality of oil here is not the best, there is no new geological work being done here. Therefore we understand that for vertically integrated companies today, the North Caucasus District is not a priority," he said.

The North Caucasus Affairs Ministry is ready to support the proposal about handing over the state assets of Chechenkhimprom, which owns refining infrastructure now managed by Rosneft, to Chechnya. However, Kuznetsov said that the discussion of this issue is ongoing between Rosneft and the Russian Federal Property Agency. "From the point of view of responsible regional authorities, posing the question is justified, and we are supporting the government of Chechnya. But the final decision remains for Rosneft and the Economic Development Ministry," he said. "I am confident that it will take place in 2017," the minister said.