Did anyone really think Moscow would just sit still as Washington, DC, and its allies attempted to extract oil and gas from Russia’s backyard in the Caspian and Central Asia?
Leaving aside Georgia, which the Russians slapped down a few weeks ago, there are other targets now under Kremlin scrutiny. They include efforts to influence the Organization of Petroleum Exporting Countries, as well as inroads into Latin America.
Russian Energy Minister Sergey Shmatko, on a recent visit to Venezuela, said his country hopes to sign a memorandum of understanding with OPEC, as a first step in cementing a closer relationship with the group.
Shmatko said the proposed MOU is a very broad program of joint action in various areas of activity. For instance, he said, it would include a better interaction between Russian companies and OPEC members.
Short on details
The Russian minister, who declined to impart very much by way of details, said some aspects of the proposed agreements might include greater cooperation regarding overall oil market analysis and information.
Lest anyone were getting panicky over the proposed MOU, Shmatko was quick to caution that closer ties with OPEC would not affect markets right away.
Russia doesn’t think that there will be immediate agreements to influence the price of oil, Shmatko said, adding that the proposed MOU is more related to an approach for a strategic partnership, for a strategic interaction.
Meanwhile, other Russian oil and gas officials on their visit to Caracas wasted no time regarding their country’s intentions toward Latin America in general and Venezuela in particular.
“There are gas fields in the region and one of the subjects for today’s discussion is the companies’ plans with possible participation of Russia in the development of not only oil, but also gas fields,” said Alexander Medvedev, Deputy Chairman of the Board of Directors of Gazprom and Director General of Gazprom export.
Long on plans
If there is a Monroe Doctrine regarding Latin American oil and gas, Medvedev made no mention of it. To the contrary, he made clear that Russia is ready to supplant the US in terms of exploiting the continent’s oil and gas reserves.
“The regional oil and natural gas market in Latin America is developing very actively both in Argentina and Brazil, and with taking into account the implementation of a large LNG project in Venezuela, this means that there will be no need as before to link Caracas only with the American market, regarding both oil and natural gas,” said Alexander Medvedev.
Indeed, noting that US companies have vacated the region, Lukoil Vice President Andrei Kuzyayev said the two sides “are considering issues linked with the establishment of a joint venture with the state-run oil and natural gas company Petroleos de Venezuela on the recovery of heavy and extra-heavy crude in the Orinoco River belt.”
Yes, friends, look over the backyard fence. The Russians are coming.
