In the oil market, Moscow is using the “honed in Crimea and Georgia,” the “technique of camouflage” – a military doctrine of deception, when you say one thing and do another, according to the Times. However, the article notes, even the most sophisticated lie will not help Russia to revive oil prices, if scheduled for later this month talks oil-producing countries on lowering or freezing of raw material production will end in failure.
Vladimir Putin in the Crimea and Georgia seriously perfected “the technique of camouflage, “writes the Times columnist Robin Pagnamenta. Now, it seems, applies the same Russian military doctrine of deception in the world oil market.
Russia is one of the main exporters in the world, however, it is not included in OPEC, which accounts for a third of the world’s oil. And that Moscow this year has been the most vocal of the leading oil-producing countries spoke in support of the agreement on the freezing or reduction of the production of raw materials for higher prices.
Last month, recalls the author, Vladimir Putin said that his country is ready to join the common efforts to limit oil production and is ready to call others to do.
“We believe that the freezing or even reduction of oil production is perhaps the only correct decision to preserve the stability of the entire world energy“, – said the President of Russia.
However, the position of the Russian leader should not be seen as something unexpected, the author believes.
“To support its economy and to Finance the growing appetite for foreign military adventures Russia desperately need higher prices for raw materials“, – stated in the article.
The browser Times explains that the proceeds from the sale of oil and gas represent 40% of all budget revenues. And began in 2014, a sharp drop in the price of black gold has sent the country into “the longest and most painful in recent decades, recession“. That is why Russian officials this year sought their conversations to achieve the growth of prices in the oil market.
“This strategy proved successful and helped to raise the price to around $ 50, “writes Robin Pagnamenta.
In this case, the higher cost of raw materials contributed to “a furious oil diplomacy“, in which the Russian envoy is actively visited capitals of different States – Caracas, Riyadh, Doha, in order to achieve global transaction. All of this activity, as well as a flurry of statements from the Russian authorities helped to prevent a further fall in prices.
However, despite all the talk about deals with OPEC and the agreements with Saudi Arabia, the reality of things in Russia is absolutely different. Despite all the statements of Vladimir Putin on the limitation of oil production, Russian oil state company “pump [oil] like crazy” and show no signs that they are going to stay, the article says. So, in October, Russia was extracted to 11.2 million barrels per day, i.e. 3.9% more than in the same month of 2015. And this is how the author writes, the highest figure since the collapse of the Soviet Union.
These discrepancies between rhetoric and action reflect a simple fact, writes the Times. The Russian government has to “pump every last barrel“to “incite balances“, especially ahead of presidential elections in 2018.
“However, the principle of “Say one thing and do another” is perhaps not the policy which Russia will be able to use it without end, “emphasizes Robin Pagnamenta.
This month, he notes, in the headquarters of OPEC in Vienna, Russian officials, together with representatives of the cartel will attempt to reach workable agreements to reduce global oil production. The browser Times notes that not even hopes for Moscow’s participation in any deal.
The author also recalls that a similar meeting a year ago came to nothing because of the “bickering” between the oil-producing countries. A similar tension apparently occurs today.
“There are signs that we can again see the same outcome. This would significantly reduce prices and it would be another bad news for the polished oil economy Mr Putin. In such circumstances, even the most sophisticated lies of the Russian leader, most likely, will not be able soon to revive prices, “concludes the Times columnist Robin Pagnamenta.