Identifier
Created
Classification
Origin
08MOSCOW2774
2008-09-15 14:09:00
CONFIDENTIAL
Embassy Moscow
Cable title:
RUSSIA'S PROPOSED "COOPERATION" WITH OPEC
how-toVZCZCXRO3050 PP RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR DE RUEHMO #2774 2591409 ZNY CCCCC ZZH P 151409Z SEP 08 FM AMEMBASSY MOSCOW TO RUEHC/SECSTATE WASHDC PRIORITY 9985 INFO RUCNCIS/CIS COLLECTIVE PRIORITY RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY RHEHNSC/NSC WASHDC PRIORITY RHMFISS/DEPT OF ENERGY WASHINGTON DC PRIORITY
C O N F I D E N T I A L MOSCOW 002774
SIPDIS
DEPT FOR EUR/RUS, FOR EEB/ESC/IEC GALLOGLY AND WRIGHT
EUR/CARC, SCA (GALLAGHER, SUMAR)
DOE FOR FREDRIKSEN, HEGBORG, EKIMOFF
E.O. 12958: DECL: 09/12/2018
TAGS: EPET ENRG ECON PREL RS
SUBJECT: RUSSIA'S PROPOSED "COOPERATION" WITH OPEC
Classified By: Ambassador John R. Beyrle for Reasons 1.4 (b/d)
--------------------------
TO SHARE PRICE INFORMATION
--------------------------
C O N F I D E N T I A L MOSCOW 002774
SIPDIS
DEPT FOR EUR/RUS, FOR EEB/ESC/IEC GALLOGLY AND WRIGHT
EUR/CARC, SCA (GALLAGHER, SUMAR)
DOE FOR FREDRIKSEN, HEGBORG, EKIMOFF
E.O. 12958: DECL: 09/12/2018
TAGS: EPET ENRG ECON PREL RS
SUBJECT: RUSSIA'S PROPOSED "COOPERATION" WITH OPEC
Classified By: Ambassador John R. Beyrle for Reasons 1.4 (b/d)
--------------
TO SHARE PRICE INFORMATION
--------------
1. (C) Deputy Premier (and Rosneft chairman) Igor Sechin
headed a Russian delegation to the OPEC meeting in Vienna on
September 9 and reportedly talked openly, in a session
attended by the press, about expanding Russian "cooperation"
with OPEC. According to press and a GOR website that posted
a summary of Sechin's speech, Russia, which is not a member
of the cartel, would share pricing and other related
information with OPEC in an attempt to help stabilize prices,
which have been steadily falling in recent weeks.
2. (C) OPEC's Secretary General was quoted in the press as
saying the organization will review the MOU proposed by
Russia, but neither he nor Sechin spoke of potential Russian
membership in OPEC. Valery Pervukhin, Head of International
Energy Cooperation at the Ministry of Energy's State
Institute of Energy Strategy told us September 11 that Russia
"has not changed the format of its participation in OPEC
affairs." He said Russia has not considered, nor is it
considering, joining the cartel. Pervukhin noted that
Russia's proposal only involves sharing information on
"prices and tendencies" in the world oil market in order for
all involved to "adequately react" to the market.
--------------
COMMENT
--------------
3. (C) Russia wants to maintain high global oil prices but
will not cut its production in support of that objective.
This is especially true now that the government budget is
coming under pressure and needs the revenue from oil and gas
exports more than ever (septel). Moreover, Russia's
contracts with Europe further limit their room for maneuver.
We would argue that there is, therefore, a limit to the
degree to which Russia can and will cooperate with OPEC, and
vice-versa.
BEYRLE
SIPDIS
DEPT FOR EUR/RUS, FOR EEB/ESC/IEC GALLOGLY AND WRIGHT
EUR/CARC, SCA (GALLAGHER, SUMAR)
DOE FOR FREDRIKSEN, HEGBORG, EKIMOFF
E.O. 12958: DECL: 09/12/2018
TAGS: EPET ENRG ECON PREL RS
SUBJECT: RUSSIA'S PROPOSED "COOPERATION" WITH OPEC
Classified By: Ambassador John R. Beyrle for Reasons 1.4 (b/d)
--------------
TO SHARE PRICE INFORMATION
--------------
1. (C) Deputy Premier (and Rosneft chairman) Igor Sechin
headed a Russian delegation to the OPEC meeting in Vienna on
September 9 and reportedly talked openly, in a session
attended by the press, about expanding Russian "cooperation"
with OPEC. According to press and a GOR website that posted
a summary of Sechin's speech, Russia, which is not a member
of the cartel, would share pricing and other related
information with OPEC in an attempt to help stabilize prices,
which have been steadily falling in recent weeks.
2. (C) OPEC's Secretary General was quoted in the press as
saying the organization will review the MOU proposed by
Russia, but neither he nor Sechin spoke of potential Russian
membership in OPEC. Valery Pervukhin, Head of International
Energy Cooperation at the Ministry of Energy's State
Institute of Energy Strategy told us September 11 that Russia
"has not changed the format of its participation in OPEC
affairs." He said Russia has not considered, nor is it
considering, joining the cartel. Pervukhin noted that
Russia's proposal only involves sharing information on
"prices and tendencies" in the world oil market in order for
all involved to "adequately react" to the market.
--------------
COMMENT
--------------
3. (C) Russia wants to maintain high global oil prices but
will not cut its production in support of that objective.
This is especially true now that the government budget is
coming under pressure and needs the revenue from oil and gas
exports more than ever (septel). Moreover, Russia's
contracts with Europe further limit their room for maneuver.
We would argue that there is, therefore, a limit to the
degree to which Russia can and will cooperate with OPEC, and
vice-versa.
BEYRLE