Translated material
Cut off marriage
Viktor Khristenko criticized the idea of American senators to ban international cartels
The discussion around rumors about the creation of a “gas OPEC” continues spontaneously. On Thursday, the US Senate Judiciary Committee approved a bill, the text of which provides for prosecution in the United States of states involved in oil and gas cartels. Yesterday, Russian Minister of Industry and Energy Viktor Khristenko said in Geneva that the initiative of American senators “causes bewilderment.” Not only does it contradict international law, it is also unrealizable in practice. According to the minister, “labeling is an attempt to take away from sovereign states their sovereign rights,” in particular “the right to dialogue and joint resolution of sectoral or regional problems.”The initiative of the Senate Judiciary Committee looks all the more strange because the head of the United States Energy Information Administration, Guy Caruso, expressed doubts about the possibility of creating a gas cartel, in fact repeating the thoughts of Mr. Khristenko, said by the Russian minister in early April before leaving for the forum of gas exporting countries in Qatar.
Hysteria around the prospects of creating a “gas OPEC” was whipped up methodically throughout the first quarter. Leaders and high-ranking officials of countries that are potential participants in such an association (Russia, Iran, Qatar, Algeria) expressed interest in this idea and demonstratively talked to each other. Meanwhile, nervousness was accumulating in Brussels and Washington, although objectively none of the producing countries was interested in taking on obligations within the framework of such a cartel. And the gas sales system itself, based on long-term contracts that are signed before projects are implemented, does not provide room for price manipulation. While their high level is determined by the growing demand for gas with the depletion of developed production sources and the need to invest in the development of new fields and the creation of transport infrastructure.
Even before flying to Doha, where ministers from 14 gas-exporting countries met, Mr. Khristenko told the press that he did not see any possibility in the medium term for creating an organization similar to OPEC in the gas sector. Nevertheless, the Senate committee unanimously approved the introduction of a bill into the American Parliament that would literally prohibit foreign countries from creating cartels.
“It shall be unlawful and contrary to the requirements of this act for any collective or other concerted action in the form of a cartel or other association... by any foreign government, instrumentality or agent of any foreign government to restrict the production or distribution of petroleum, natural gas or other petroleum product, as determined or maintaining prices for oil, natural gas or other petroleum products, as well as any restrictions on trade in oil, natural gas or other petroleum products,” RIA Novosti quotes the text of the document. The bill also states that any foreign state involved in cartels or other joint or collective actions in the oil and gas industry will now be deprived of the right to "sovereign immunity", and therefore the US Attorney General will have the power to prosecute such states in court. any court in the United States in accordance with American antitrust laws. "This bill will hold a number of oil-producing countries accountable for their collusion and behavior that artificially and sharply reduce supplies and inflate fuel prices," its chairman, Democratic Senator Patrick Leahy, said before the committee vote.
Speaking yesterday at the regular session of the UN Unified Energy Commission, Mr. Khristenko expressed confidence that the dubious legislative initiative of the senators of the legal committee will not pass. “In a modern democratic society, everyone has the right to an opinion, a proposal,” said the Russian minister. - The task of an effective state apparatus of modern democracy is the culling of ideas. Rejection of ideas: a) ineffective, b) contrary to international law and the legislation of the country, c) unrealizable in practice. It seems to me that the idea voiced above will be cut off by the second and third filters listed above.”
Meanwhile, the United States itself is well aware that today the prospects for creating a gas cartel look very vague. “I don't think the idea is feasible because selling gas in the LNG sector is significantly different from selling oil,” Reuters quoted Mr. Caruso as saying. “I think gas exporters will continue to meet and negotiate, but I don’t think creating a cartel is possible, especially in the medium term.” Until a serious gas spot market is created, a gas cartel will not be practical, Caruso said, and the spot market will likely be limited to 10-20% before 2020.