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Friday, 21 November, 2008, 21:40 GMT | more >>

'Russia planning global gas cartel'



By Upstream staff 

Nato advisers have warned that Russia may be seeking to create a gas cartel stretching from Algeria to Central Asia to use as a political weapon in dealings with Europe, alliance sources claimed today.

The warning of a Russian-backed "Opec for gas" came in a confidential report by Nato's economic committee presented to alliance nations last week.

It concluded that Russia, which supplies a quarter of Europe's gas, was aiming to draw Algeria, Libya, Qatar, the countries of Central Asia and possibly Iran into a cartel wielding huge power over the gas market.

That would strengthen Moscow's hand in relations with Europe and particularly with neighbours such as Ukraine and Georgia, which Moscow wants to dissuade from moving closer to Western bodies such as Nato and the European Union, the sources told Reuters.

"It quotes (Foreign Minister Sergei) Lavrov as saying as much in private meetings with other Russian officials," said one alliance source who had seen the document, referring to the political power such a cartel could wield.

A Nato spokesman declined to comment on the report because it was confidential. The Financial Times first reported its existence in an article yesterday.

An alliance source said it represented the views of experts from national capitals rather than an official Nato view, and noted that it made no recommendations on possible Nato action.

Regular contacts already tale place among gas exporting countries.

The world's top natural gas producers launched the Gas Exporting Countries Forum (GECF) in May 2001. The 15-member group includes Opec oil producers Iran, Qatar, Saudi Arabia, the United Arab Emirates, Algeria, Nigeria and Venezuela, as well as leading European supplier Russia.

The group straddles about two-thirds of the world's gas reserves. Energy ministers of GECF stress the forum is a talking-shop rather than a cartel in the making.

However, the European Commission has said it is watching closely a co-operation deal agreed in August by Russian gas monopoly Gazprom and Algeria's Sonatrach company after concern it could lead to higher gas prices in Europe.

At the same time, the Commission is pressing the 25-nation European Union to adopt a common energy policy that would reduce its reliance on individual suppliers and strengthen its collective voice in dealings with Moscow.

Russia's energy might came to the fore at tense talks between European leaders and Russian President Vladimir Putin in Finland last month, where EU officials said Putin pledged to avoid a "politicisation" of oil and gas.

EU leaders sought to maintain a common front at the meeting but there are splits within the bloc between those who want to explore closer national energy ties with Moscow and those who view Russia as a neighbourhood bully using its gas power.

Yesterday Poland threatened to scupper a Europe-Russia summit later this month by refusing to give its go-ahead for EU talks on a new cooperation pact with Moscow unless the bloc sought Russian commitments on food imports and energy security.

Tuesday, 14 November, 2006, 12:09 GMT  | last updated: Tuesday, 14 November, 2006, 12:14 GMT

Russian gas moves: a paper prepared for Nato claims Russia is intent on forming a global gas cartel
 

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