Russian News  
Analysis: Russia courts OPEC

disclaimer: image is for illustration purposes only
by Stefan Nicola
Berlin (UPI) Sep 12, 2008
Russia has courted OPEC with a memorandum to forge closer ties, a move that, if realized, would increase the power of oil-producing nations and further weaken importers in Europe, observers say.

Observers at the most recent meeting in Vienna of the Organization of Petroleum Exporting Countries said the Russians were the biggest delegation ever from a non-OPEC country: Together with 20 high-ranking officials from Russia's economic and political scene, Igor Sechin, Russia's deputy prime minister, delivered a memorandum to the conference.

"OPEC is Russia's key partner on the global oil market," Sechin, who also chairs Russia's largest oil company, Rosneft, was quoted by RIA Novosti as saying. "We are putting forward an initiative to establish a regular energy dialogue between Russia and OPEC, the main goal of which will be to contribute to providing sustainable stability on the oil market in the interests of all participants."

Russia is also interested in a "mechanism for regular coordination, information exchange and market analysis and forecasting" with OPEC, Sechin said.

OPEC said it was willing to review the memorandum and look for ways in which cooperation could be increased. Including Russia would boost OPEC's profile, as Russia has the world's eighth-largest crude reserves.

OPEC's secretary-general, Abdallah Salem el-Badri, will travel to Moscow to discuss with Russian leaders further details of the intensified cooperation; he has promised, however, that a decision won't affect the consumer at all.

Experts are not so sure about that.

Russia would increase its clout, once tied to OPEC, and consumers in Europe may suffer as a result, said Stefan Meister, Russia expert at the German Council on Foreign Relations, a Berlin-based think tank.

"For importers in Europe, it could become harder to find alternative suppliers or to have an influence on prices," Meister told United Press International in a telephone interview. "Russia certainly wants to increase its energy leverage."

OPEC has 12 member states: Algeria, Angola, Venezuela, Iran, Iraq, Qatar, Kuwait, Libya, Nigeria, United Arab Emirates, Saudi Arabia, Ecuador. Another OPEC country, Indonesia, will be suspended from the group Jan. 1, 2009. OPEC accounts for roughly 40 percent of the world's oil production. Russia, with 12 percent, is the world's biggest non-OPEC producer.

An OPEC that includes Russia would control more than half of the world's crude output, a thought that worries most observers in Europe.

Russia's image in the West has been tarnished since the recent Georgia crisis, although energy exports to Europe have been reliable over the past decades.

Moscow has long threatened to look for alternative export routes, as much as European politicians, mainly in Britain and less so in Germany, have called for a diversification of import sources to reduce dependence on Russia as a supplier. Already, the European Union imports almost half of its natural gas and 30 percent of its oil from Russia, with exports doomed to rise as domestic resources dwindle.

Yet neither Moscow nor OPEC said Russia would coordinate its oil production or exports with the cartel, and Russia hasn't cut production levels in accordance with OPEC over the past years.

Russia may not be willing to have its output influenced, nor will all OPEC members be excited about Russia's advances. Saudi Arabia, a staunch ally of the United States, will be less optimistic toward having Russian influence on the organization than Iran or Venezuela, countries that already are forging closer ties with Moscow.

Including Russia also could mean inviting in trouble, observers say.

"Russia, to put it mildly, is not known for being focused on consensus," Meister said. "So it may become more difficult to find common ground within OPEC in the future."

Russia nevertheless hopes for a positive answer at an OPEC meeting next month in Moscow.

(e-mail: [email protected])

Community
Email This Article
Comment On This Article

Share This Article With Planet Earth
del.icio.usdel.icio.us DiggDigg RedditReddit
YahooMyWebYahooMyWeb GoogleGoogle FacebookFacebook



Related Links
Powering The World in the 21st Century at Energy-Daily.com

China studying third West-East gas pipeline: report
Beijing (AFP) Sept 11, 2008
China may build a third west-east gas pipeline in a bid to meet strong demand along its economically vibrant eastern seaboard, state media reported Thursday.







  • Military Matters: Baltic defense realities
  • Analysis: EU works on detente with Russia
  • Outside View: Russia-NATO split -- Part Two
  • Euro-Russo Split Widens Part One

  • Israel Bets On David's Sling
  • Iran rejects US shipping accusations
  • Russian planes in Venezuela a warning to US: Chavez
  • Five arrested for alleged 'uranium' smuggling, say police

  • Bangalore To Host India's Maiden Space Exposition
  • Chandrayaan-I Passes Critical Endurance Test
  • National Remote Sensing Agency Becomes An ISRO Centre
  • Analysis: Revolt in India rebel group ULFA

  • China says little interest in 88 quake orphans up for adoption
  • Riot police quell two separate large protests in China
  • Chinese aluminium giant sets up mining unit in Tibet
  • China unveils plans for huge steel plant: report

  • Analysis: Russia courts OPEC
  • Hong Kong energy giant plans to invest in China power plant
  • Scientists Develop Model To Map Continental Margins
  • Carbon Molecule With A Charge Could Be Tomorrow's Semiconductor

  • Russia To Launch Progress M-65 Space Freighter To ISS
  • Russia's Progress Spacecraft Buried In Pacific Ocean
  • European freighter detaches from space station
  • NASA TV to show ISS cargo ship arrival

  • DataPath Wins Suppport Contract For US CENTCOM SatComm Hubs
  • Satellite's Data Collection Will Support Warfighter
  • Boeing Awarded E-6B Upgrade Contract
  • Defense Support Program Satellite Decommissioned

  • Boeing ABL Team Begin Firing High-Energy Laser
  • Russian Navy To Receive 4 New Amphibious Planes By 2013
  • GD Awarded Contract For M1A1 Abrams Tank Upgrades
  • ITT's FRCS Achieves No-Jam Success At Exercise Red Flag

  • The content herein, unless otherwise known to be public domain, are Copyright 1995-2007 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement