Russia-Algeria Talks Not Necessarily About Gas Cartel

Russia-Algeria Talks Not Necessarily About Gas Cartel
DJ
Τρι, 16 Σεπτεμβρίου 2008 - 12:49
ALGIERS (AFP)--Talks between Algeria and Russia are "not necessarily" aimed at creating an Organization of Petroleum Exporting Countries-style gas cartel, though it is their right to form such a bloc, Russia's ambassador to Algeria was quoted as saying Monday.
ALGIERS (AFP)--Talks between Algeria and Russia are "not necessarily" aimed at creating an Organization of Petroleum Exporting Countries-style gas cartel, though it is their right to form such a bloc, Russia's ambassador to Algeria was quoted as saying Monday.

In an interview published in L'Expression, the Algerian French-language daily, Alexander Yegorov said "producing countries and gas exporters do not have the intention of creating a monopoly on the market."

However, he said that "it is our right to concentrate ourselves in this area" owing to the very high infrastructure costs for gas exploitation.

While talks between the two parties are "not necessarily" geared towards creating a cartel, they are focussing on "how to react if European countries decide to establish an organization of gas importing countries," said Yegorov.

The idea of creating a gas cartel to control prices and supplies has been pushed by Iran and Qatar, with support from Moscow.

Russian President Dmitry Medvedev said in July that a gas cartel, modeled on OPEC, remained a possibility.

"No decisions have been reached but it would be incorrect to say that this issue has been closed," he said at the time.

The group currently overseeing gas exporters is the Gas Exporting Countries Forum, which represents some 15 countries rich in natural gas, including Algeria, Iran, Qatar, Russia and Venezuela, among others.

Algeria and Russia are also forging stronger ties on nuclear energy.

In the interview, Yegorov said a nuclear energy deal towards peaceful means is being prepared between the two, but "its launch depends on Algeria."

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