Wednesday, January 04, 2006

Russia Matrix: Part III - War for Gas?

Right on the heels of my post last evening re: Russia and Ukraine, comes an excellent article that explains succinctly what Russia is trying to do with natural gas (same as with oil).

- Russia wants to form a gas cartel. Russia, which together with Iran has 45 percent of the world’s natural gas, has since 2001 been instrumental in creating and strengthening an international Gas Exporting Countries Forum, and exploring the GECF’s potential to be an OPEC-style cartel. The forum has no European or North American members, and has a majority of Middle-Eastern or rogue states.

Remember that energy revenue from gas and oil makes up a staggering 70 to 80% of Russian revenue. Without it, or with decreasing parts of the market or decreasing prices due to high supply, Russia's economy goes "kaput".

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