Vorys, Sater, Seymour and Pease LLP (LexBlog Russia)
Energy Security – Still An Issue
We reported previously on energy security issues in Europe (see here). The NYT has a recent article discussing new pipeline infrastructure being considered between Russia and the West that would allow Russia to leverage energy issues and again dominate former Soviet-bloc countries.
Russian Oil Exports
The Houston Chronicle is reporting that Russia’s largest oil producer believes that Russia will be unable to sustain the increase in oil exports that saw it become the world’s largest oil exporter in the post-Soviet era. The reasons: Domestic demand increases and a loss of tax incentives for exports.
We noted earlier this year the energy security issues between Russia, the Ukraine and Europe. Venezuela has now halted oil exports to Honduras to pressure reinstatement of ousted President Manuel Zelaya according to this article in the NYT, raising similar security issues.
According to this article in the Houston Chronicle, OPEC has agreed to cut 2.2 million barrels from its daily production while Russia and Azerbaijan have announced their own cutbacks as well (in the range of hundreds of thousands of barrels). Attempted price manipulation? You bet.