#13
Vek
No. 32
August 23, 2002
THE REST OF THE WORLD LIKES RUSSIA
The West sees Russia as a leader in the global oil market
Author: Nikolai Ivanov
[from WPS Monitoring Agency, www.wps.ru/e_index.html]
WHILE THE RUSSIAN ECONOMIC COMMUNITY HAS BEEN BUSY WITH ITS USUAL AUGUST SELF-ANALYZING - DISCUSSING THE DEFAULT OF 1998 AND THE CHANCES OF ANOTHER DEFAULT - THE REST OF THE WORLD HAS BEEN ADMIRING RUSSIA'S ABILITY TO COPE WITH ITS SHAMEFUL ROLE AS A NATURAL RESOURCES APPENDAGE OF THE WEST.
While the Russian economic community has been busy with its usual August self-analyzing - discussing the default of 1998 and the chances of another default - the rest of the world has been admiring Russia's ability to cope with its shameful role as a natural resources appendage of the West.
For instance, the Wall Street Journal suddenly discovered that Russia is a leader on the world oil market and in the near future, it is likely to become a serious rival for the OPEC countries. It is very interesting that the West is praising Russia for what Russia does not dare to be proud of - of the dependence of its welfare on the situation on the oil market.
Simple-minded Americans believe that the role of Russia on the international oil market has increased considerably due to the almost complete independence of the oil sector from the state. It especially concerns the area of profit and investment distribution, which gives Russian oil companies a noticeable advantage over their OPEC competitors. It is not ruled out that the net cost of the Russian oil may fall to the cost of the Arabian one, and this will be a real Russian wonder, if take into account the geological and climatic conditions.
Russian oil producers do not dare to talk about their advantages openly, at least in Russia. Otherwise, they may lose this advantages very easily. At the same time, currently the government and the presidential administration are racking brains trying to resolve this internally contradictory issue: how to increase tax revenues from the oil industry and restore the state control in the sector, and at the same time to restore the lost Soviet positions on the world oil market. Besides, the Russian government would gladly continue the recently started dialogue with the US concerning oil supplies. In other words, the West considers the helplessness of the state in restraining oil companies as a power of these companies and the state as a whole.
Russia may drown in the flood of flatteries. The United States is interested in decreasing its dependence on the OPEC oil suppliers, in particular, on Saudi Arabia - as it turned out, this country is rich not only with oil but also with terrorists. That is why it is not ruled out that the US propaganda will continue arrogating to Russia intentions to become a US largest oil supplier and partner. On the other hand, the OPEC countries are currently considering Russia as a force, which may be useful for achieving their own aims. On the threshold of the September oil cartel conference, influential OPEC members have started visiting Moscow.
Recently, Kuwaiti Minister for information and oil Sheikh Ahmad al-fadh as-Sabah visited Moscow for talks with his Russian counterpart Igor Yusufov. The Kuwait minister said he would like Russia to coordinate its oil policy with the OPEC. At the same time, he approved of the Russian oil exports restrictions in the beginning of the year, and of ceasing the restrictions and increasing oil exports. However, it seems that main thing the sheikh was mostly concerned about was Russia's support of Kuwait in its negotiations with other OPEC countries. Kuwait is interested in preserving its high supplies and oil prices on the world market, while the other members of the organization are insisting on increasing quotas.
In short, no matter what Russia is doing in its own interest, there are always ardent supporters. It is a unique situation when an OPEC member welcomes increased oil exports from Russia and requires to morally support its own restrictions.
There may be various explanations for Russia's being on the crossing of West's and East's interests: good luck, a growing political influence, exacerbation of the Iraq problem. The only question is whether Russia will be able to take advantage of the present favorable situation and to have other countries admit the legality of Russia's other advantages. In particular, this concerns the right for using its own cheap energy resources and, consequently, withdrawal of the absurd requirement of the World Trade Organization to equalize domestic and foreign energy prices.
However, the main thing for Russia is to forget its August hang- ups and stop feeling like a loser. Russia needs to finally take the position offered by the rest of the world, in order to have stability. Russia needs to hurry, while the rest of the world still likes it.
(Translated by Arina Yevtikhova )
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