Russia Vows to Stay in OPEC+ Despite UAE Exit, Kremlin Says
By Aboki Forex —
MOSCOW. Russia has no plans to leave OPEC+ even after the United Arab Emirates announced its withdrawal from the oil producers' alliance. The Kremlin made this clear on Wednesday, expressing hope the group can survive the current turmoil in global energy markets.
The UAE said on Tuesday it would quit the Organization of the Petroleum Exporting Countries. The move deals a blow to the cartel as an energy crisis sparked by the Iran war has exposed deep rifts among Gulf nations. The UAE was the fourth largest producer in the OPEC+ grouping. Russia is second, behind Saudi Arabia.
Kremlin spokesman Dmitry Peskov said OPEC+ remains an important organisation, especially now. “This format helps to substantially minimise fluctuations in energy markets and makes it possible to stabilise those markets,” Peskov told reporters at a daily briefing.
Peskov said Russia respects the UAE’s decision to leave. He added that Moscow hopes its energy dialogue with the Gulf state will continue. Russia joined OPEC+ in 2016. The group produced nearly half of the world’s oil and oil liquids last year, according to the International Energy Agency.
Peskov later told state news agency RIA that the UAE did not warn Moscow before announcing its exit. “No, they did not warn us. This is a sovereign decision of the United Arab Emirates. We respect this decision,” he said.
Russian Finance Minister Anton Siluanov warned on Wednesday that the UAE’s exit could lead to higher production and lower global oil prices. “If OPEC countries conduct their policies in an uncoordinated manner after the UAE’s exit and produce as much oil as their production capacities allow, prices will go down accordingly,” Siluanov said.