Russia takes pass on Qatar conflict with Arab neighbours

Oil, natural gas catalyst for walking the line

- Advertisement -

MOSCOW – Russia, which has called for dialogue to tackle the political rift in the Arab world over Qatar, will not take sides in the conflict between Doha and its neighbours, Chris Weafer, a partner at Macro-Advisory told New Europe in Moscow. “It doesn’t need to. But I understand it has let it be known it is available to host mediation talks if asked by both sides,” he said.

Saudi Arabia, the United Arab Emirates, Egypt and Bahrain have imposed measures to isolate Qatar, accusing Doha of supporting terrorism. Doha denies the accusation.

Qatar is a major producer of natural gas and the world’s top exporter of liquefied natural gas (LNG).

“Since the west imposed sanctions and Beijing was cool to the China-pivot in 2014, the Kremlin has pursued a diversification strategy in both trade and politics,” Weafer said, adding that this is one of the main reasons Russian President Vladimir Putin twisted Rosneft President Igor Sechin‘s arm to cooperate with the Organization of Petroleum Exporting Countries (OPEC) deal last November.

Sechin, who is the chief executive officer of Russia’s biggest oil producer, initially opposed the deal but has since become a supporter, Weafer said, explaining that the Rosneft CEO changed his mind “since Rosneft made a lot of money because of it”.

“For Putin the OPEC deal is both good politics and good economics. The latter because Russia has earned $2.25 billion more per month over the past six months with the average price at $54 per barrel than it would have with a $45 per barrel average,” Weafer said. “The former because the Arab states have not criticised Moscow’s involvement in Syria since the November deal was announced,” the partner at the Moscow-based consultancy added.

“Moscow is in a sort of sweet-spot in the Middle-East right now. It has finally achieved good relations with Riyadh, after two and a half decades of antagonism. Qatar is a major investor in Rosneft and Abu Dhabi is a big investor in the Russian economy,” Weafer said. “In addition it has better relations with Iran and Turkey than any western state and is close to both the Egyptian government and the faction controlling the oil provinces in eastern Libya. It also counts Israel as an ally,” he said, stressing that “it would be an act of great foolishness to now take sides and risk current friendships and tolerances”.

“Realistically the only way for Qatar to pipe its gas to Europe is either across Saudi and Egypt – obviously never going to happen – or across Iran and Turkey – Iran would never agree to that – or via Iraq-Syria. Moscow would block that,” he said.

According to Weafer, Qatar’s past, present and future role in gas is in LNG plus the Dolphin pipeline, which links Qatar’s giant North Field with the UAE and Oman, “to fuel the power plants that keep Dubai’s lights on”.

Qatar said earlier in June it has no plan to shut the Dolphin pipeline that pumps around 2 billion cubic feet of gas per day to the UAE.

Qatar’s state-owned Mubadala Development Company owns 51% of Dolphin, while French oil giant Total and Houston-based Occidental each have 24.5%.

Meanwhile, Weafer said he expects the Russian oil companies to be less compliant with the OPEC deal extension as the price has slipped below $48 and US Shale is gaining market share.

follow on twitter @energyinsider

 

 

 

 

- Advertisement -

Subscribe to our newsletter

Co-founder / Director of Energy & Climate Policy and Security at NE Global Media

Latest

On the two-year anniversary, G7 Foreign Ministers address the devastating war in Sudan

After nearly 23 months of war, on March 21,...

Doom, gloom or boom?

While it is an almost painful daily task to...

Don't miss

On the two-year anniversary, G7 Foreign Ministers address the devastating war in Sudan

After nearly 23 months of war, on March 21,...

Doom, gloom or boom?

While it is an almost painful daily task to...

Romania utilizing all available resources to boost its energy independence

Romania is using all energy resources available, including natural...

Ahead of nuclear talks, Trump administration orders new sanctions on Iran’s shadow fleet and Chinese refiners

Washington’s sanctions campaign of “maximum pressure on Iran” is intensifying, despite the start of initial discussions between the U.S. and Iran over nuclear issues...

Romania utilizing all available resources to boost its energy independence

Romania is using all energy resources available, including natural gas as the country advances rapidly with Neptun Deep gas project and new wind and...

Apollo Funds to partner with BP on TANAP gas pipeline from Azerbaijan to Turkey

British energy company BP said on March 21 it has reached agreements for Apollo-managed funds to purchase a 25 percent non-controlling stake in BP...

Caspian-Black Sea Green Energy Corridor countries push project forward

The Ministers of Azerbaijan, Georgia, Hungary and Romania met in Budapest on March 10, where they signed a joint letter to EU Energy Commissioner...

Ignoring Russia, latest Trump administration Iran sanctions increase pressure on an old enemy

On March 13, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned (“designated” in OFAC language) Iran’s Minister of Petroleum, Mohsen...

EU signs critical raw materials, energy and infrastructure deals with Kazakhstan

As part of the visit of EU Commissioner for International Partnerships Jozef Síkela to Astana, the European Union and Kazakhstan signed on March 13...

Weaning Europe off its Russian gas addiction

The Viking hero Ragnar Lodbrok once said “don't waste your time looking back. You're not going that way.” The words of the former king...

Swedish Foxtrot criminal network in Washington’s sanctions crosshairs

The U.S. Treasury is targeting the “Foxtrot Network,” which is one of the most notorious criminal gangs based in Sweden and has conducted shootings,...