Moscow — Russia's energy minister Alexander Novak plans to meet with his US counterpart Rick Perry in Moscow on Thursday to discuss oil and gas markets, Iran sanctions, and the Nord Stream 2 gas pipeline from Russia to Europe, Novak said Monday, as quoted by Prime news agency.
"We will hold a meeting on September 13 in Moscow," Novak said in Vladivostok ahead of the Eastern Economic Forum. "The topics include cooperation in energy, energy efficiency, and the revival of cooperation within the energy dialog. We will undoubtedly talk about the situation in the oil and gas market."
The talks will follow a meeting between Perry and Saudi Arabia's oil minister, Khalid al-Falih. Falih and Perry attended an American football game at Texas A&M University on Sunday, Perry said in a tweet, and are reported to have scheduled a meeting in Washington on Monday, according Saudi TV channel Al Arabiya, citing a US government source.
Saudi Arabia, de facto OPEC leader, and Russia are the top two producers in the OPEC/non-OPEC coalition, which agreed a joint crude output cut as of January 2017 aiming to balance global oil markets. Pressure from US President Donald Trump to moderate oil prices, along with fears of an over-tightening market, with the US set to re-impose sanctions on Iran in November, prompted the coalition to agree June 23 on a 1 million b/d output increase.
Perry said following the decision the US was confident Saudi Arabia and Russia will meet the oil supply gap resulting from the upcoming re-imposition of US sanctions on Iran in November, poised to reduce Iran's crude export volumes.
Novak said he plans to discuss the Iran sanctions with Perry this week.
"Last time, we of course discussed the consequences of sanctions against Iran, which would affect global markets and which the US plans to introduce as of November. We will certainly touch on this subject as it gravely affects the market expectations," Novak said, adding that Tehran had not asked Russia to serve as a mediator in the talks between the two countries.
Novak also plans to discuss with Perry the creation of gas infrastructure, and specifically the 55 Bcm/year Nord Stream 2 gas pipeline expanding links between Russia and Germany across the Baltic Sea next year, Novak said.
The meeting comes at a time when US lawmakers are debating a fresh package of sanctions against Russia which, if adopted, may interfere with the construction of Nord Stream 2 by targeting companies involved in its construction and financing.
Russia has repeatedly called the US sanctions threat an uncompetitive way of promoting US LNG in Europe, as it is more expensive than Russian pipeline gas.
Perry's meetings with Novak and Falih also come ahead of the September 23 meeting in Algiers of the OPEC/non-OPEC Joint Ministerial Monitoring Committee ?- chaired by Falih and including ministers from Russia, Kuwait, Venezuela, Algeria and Oman. Iran's oil minister Bijan Zanganeh is also expected to attend the JMMC meeting. Meanwhile, Novak said Russia is satisfied with current oil prices, which he described as "good" while adding that he expects them to fall later in the year as they traditionally do amid shrinking demand, Prime reported.
