By Emre G├╝rkan Abay
Russia letter, week beginning Nov. 28

-Markets focus on OPEC meeting

Russian markets are focused on the upcoming OPEC meeting on Nov. 30 in Vienna.

As one of the largest oil exporters in the world, Russia in recent months has been fiercely lobbying other oil producing countries to freeze oil production to push oil prices higher.

With the help of these lobbying activities, oil prices have increased from $30 per barrel levels to average $50 per barrel.

On Sunday, however, another major oil producer, Saudi Arabia, said that OPEC was not obliged to freeze their oil production levels and withdrew from talks with Russia and other oil producing countries.

This has created a new downward pressure on oil prices and lessened hopes for an agreement within OPEC. This is bad news for Russia as nearly half of the country’s revenues derive from oil exports.


-Russia, Ukraine and EU to meet for natural gas supplies

Russia, the European Union and Ukraine agreed to meet to discuss extra natural gas deliveries for the winter season. This was announced after a meeting in Moscow last week between Russian Energy Minister Alexander Novak and European Commission (EC) Vice President of the Energy Union Maros Sefcovic.

Sefcovic also said that a $500-million credit agreement from the World Bank to Ukraine is about to finalized to support the country in its energy requirements. 

28 Nov,2016