The threat of an OPEC-style gas cartel

Russia's gas exports have gone down for the first time since 2001. Peteris Strautins explains that they are expected to sink by a further two percent in 2007, and sees Russia's problems with countries where "coloured revolutions" have taken place as the reason for these reductions. He points out that this may lead Russia to reconsider its strategy: "It's well-known that Russia has been unable to set up new storage facilities. This is why Gazprom no longer has sufficient resources to carry out the Kremlin's ambitious expansion plans and create a new energy empire. However, there is a distinct possibility that Russia will join forces with Iran, Algeria, and perhaps other states to forge a kind of gas OPEC against which the EU's anti-competition authorities would be powerless. A gas cartel like this would be in a much better position to dictate gas prices in Europe than Russia alone."

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