Dang, that's some crude construction.
Not sure which remedies you've tried already, but if you're able to take apart the barrel/receiver from the stock and all, what's been recommended to me is soaking the action in kerosene, like in a large coffee can or something. I've a gun that could probably use the same treatment, although it's in a more operational state than yours, I just haven't gotten around to trying it yet.
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