Russia is behaving in the energy sector “as a hostile player for malicious purposes,” the US Department of State says. This statement was made at a press briefing by a senior representative of the foreign affairs agency. At the same time, the official refused to comment on the possibility of introducing new sanctions against Moscow.
“As for sanctions, we are not commenting on this issue or discussing prospects ... The State Department and other executive authorities, as well as the Congress, repeatedly mentioned cases where Russia acted as a hostile subject in the energy sector, that is, pursued malicious goals . This, in my opinion, speaks for itself, ”the official said, answering the question of whether the US is considering sanctions against Russia in order to stabilize oil prices.
The representative of the State Department also did not make statements about negotiations with Moscow on the situation in the oil market. At the same time, the official reiterated the statement that Russia allegedly uses its energy resources as a “political weapon”, and called on the world community for coordinated actions.
“We, as well as Congress, have indeed repeatedly pointed out that Russia uses energy issues as a political weapon. What we are not going to do is go into the details of the private discussions that we are conducting with other countries. We urge all actors to take into account the current situation, characterized by global uncertainty and economic shocks, and act responsibly to help overcome difficulties on a collective basis, ”the American diplomat added.
Washington is trying to make Russia guilty of a situation that arose due to unforeseen circumstances, said Konstantin Blokhin, a leading researcher at the Center for Security Studies of the Russian Academy of Sciences, in a conversation with RT.
“The US wants to accuse Russia of lowering oil prices due to Moscow’s refusal to enter into a deal with Riyadh. The main reason is coronavirus, due to which oil consumption has decreased worldwide, primarily in China, ”the expert noted.
In turn, the director of the US Roosevelt Study Foundation at Moscow State University, Yuri Rogulev, believes that such statements are the result of discussions that Russia allegedly uses the current situation with falling oil prices to strike the American shale oil industry.
“It seemed to someone in the USA that this could really be so, so now they are talking about it at the State Department,” the expert explained.
Sanctions Uncertainty
Recall, March 19, Donald Trump said that "at the right time" intends to take part in discussing the situation with pricing in the oil market, caused by the differences between Saudi Arabia and Russia.
- US President Donald Trump
- Reuters
- © Jonathan Ernst
“This is detrimental to a great, very powerful industry. At the right time, I will intervene, ”Trump said.
Then, citing sources in the Trump administration, The Wall Street Journal reported that the White House plans to intervene in the “price war” between Saudi Arabia and Russia.
According to the publication, Washington through diplomatic channels will demand from the Saudi authorities to reduce oil production. At the same time, sources in the White House said that restrictive measures will be considered against Moscow, with the help of which the Trump administration expects to stabilize oil prices.
The sources of the publication did not specify the nature of possible sanctions against Russia, however, the WSJ material says that American oil companies demanded that Trump administration take measures to correct the situation on the oil market.
Yury Rogulev in a conversation with RT noted that the White House is in no hurry to introduce new restrictive measures against Russia, since their possible effect on world oil prices has not yet been calculated.
“So far, Washington has refrained from imposing sanctions, because it is unclear how these sanctions can affect the oil market. Today, the situation in the oil industry is rather unstable, and it can develop into a crisis for the United States, so they are careful not to take any steps, ”the political scientist explained.
On March 20, Reuters reported, citing senior members of the Trump administration, that the White House plans to send a special representative to Riyadh to negotiate on this issue. The agency notes that the increase in oil production by Saudi Arabia exacerbates the damage caused to the global economy by the epidemic of coronavirus COVID-19.
The White House has not yet made official statements about sending its representatives to Saudi Arabia, but Texas Railways Commissioner Ryan Sitton said OPEC had invited him to attend the next meeting of oil exporting countries in June. This agency (Texas Railroad Commission), despite the name, serves as the state regulator of the Texas oil and gas industry, the largest producer of crude oil in the United States.
On his Twitter, Sitton said he had a telephone conversation with OPEC Secretary General Mohammed Barkindo. During it, the parties agreed on the need to conclude an international deal on oil prices, which would ensure economic stability against the backdrop of the COVID-19 epidemic.
Oil decline
Recall that world oil prices fell significantly after March 6, Russia and Saudi Arabia were unable to extend the OPEC + agreement. This agreement between 20 states regulated world oil prices. Against the backdrop of the collapse of the transaction, commodity prices began to decline sharply. The situation was aggravated by the decision of Saudi Arabia to increase production volumes and provide discounts to customers.
Nevertheless, Russian officials note that Moscow and Riyadh maintain partnerships, and the participation of third countries in the bilateral process of stabilizing oil prices is not required.
- Oil fields
- Reuters
- © Nick Oxford
“There are no price wars between Russia and Saudi Arabia. There is a very unfavorable pricing environment for many countries, which is provoked, we have already talked about these factors. We have good relations, partnerships with Saudi Arabia, and we don’t think that anyone should intervene in these relations, ”emphasized Russian President’s press secretary Dmitry Peskov, answering a corresponding question from journalists.
Peskov recalled that even before the coronavirus epidemic, there was a downward trend in oil consumption in the world.
“You know that the Russian budget is calculated at $ 42 per barrel. Of course, this price (current oil price. - RT ) is unfavorable for us, but there is an airbag, it will turn on when it is needed. In the short and medium term, nothing terrible happens, ”said Peskov.
Individual interest
Experts say that despite the State Department’s refusal to publicly announce its intention to punish Russia, the accusation of allegedly “hostile activity” in the energy sector may indicate the preparation of a new package of sanctions against Moscow.
“It is quite obvious that Washington is looking for reasons to impose sanctions,” Konstantin Blokhin believes.
A similar point of view is shared by Yuri Rogulev. According to him, the White House in all matters primarily promotes the interests of the United States, so sanctions are for Washington one of the main instruments of unfair competition in the energy market.
“Washington imposed sanctions against Nord Stream 2, which is a prime example of an unfriendly policy toward Russia. Moreover, at that time, the United States used the sanction factor in order to intervene in market relations in European territory. These are all striking examples of double standards, ”the political scientist added.
The situation with the destabilization of the oil market and the global economy due to the coronavirus will become a new reason for restrictive measures against the Russian Federation, regardless of its involvement in these events, Konstantin Blokhin believes.
“The United States in this case simply wants to justify the containment of Moscow, so they will use any excuse to introduce further sanctions against Russia,” the political scientist believes.