Russia may create OPEC-style gas cartel

Leaders of natural gas-rich Russia and Qatar tonight announced they would explore the creation of a natural gas cartel, despite the opposition of EU leaders.

The cartel would represent the interests of producer countries in controlling the global market.

Russian president Vladimir Putin and Qatari emir Sheikh Hamad bin Khalifa al Thani told reporters they wanted more cooperation among competing gas producers as a way to co-ordinate relations with countries that import gas.

“We do not reject the idea of creating a gas cartel,” Mr Putin said. “But this initiative requires more study.”

European Union leaders have said they would stand against any effort by Russia to create such a cartel, fearing gas prices, and Russia’s political clout, could rise dramatically as a result.

Europe gets 44% of its natural gas imports from Russia.

Mr Putin said he would send a team of experts to a natural gas conference being held in Doha in April, where they would discuss details of building a cartel resembling the Organisation of Petroleum Exporting Countries (OPEC).

Qatar is an OPEC member but Russia is not.