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EASTWEEK
Weekly analytical newsletter on Russia, Ukraine, Belarus, the Caucasus and Central Asia (also available in Polish as Tydzień na Wschodzie)

Contents

No. 25(175) | 2009-07-15
Also available in PDF

Analyses

  • Limited results of the Russian-US summit

    During his visit to Moscow on 6-8 July, President Barack Obama met his Russia counterpart Dmitry Medvedev and the prime minister Vladimir Putin, delivered an address at the Russian New Economic School, and held a meeting with representatives of the Russian opposition. A number of documents were signed as a result of the talks, including an agreement laying down basic parameters of the new arms control treaty, and a presidential commission was appointed to co-ordinate co-operation in specific fields.

  • Progressing destabilisation in Central Asia

    The security situation in the Uzbek and Kyrgyz parts of the Fergana Valley and in Tajikistan has deteriorated in recent weeks. The main causes include the activities of Islamic militants (including Al Qaeda, which operates in the area from Afghanistan and Pakistan), as well as internal tensions, which are particularly strong in Tajikistan, and the deepening economic crisis. Because of the scale of the problems, the area may soon become seriously destabilised with escalating conflicts and crises of the state, especially in Tajikistan. This may adversely affect the situation throughout the region. The rising instability is also affecting the external players. It supports Russia's policy of rebuilding its dominant position in Central Asia and poses a threat to Western interests in the area, especially the ISAF mission in Afghanistan.

Events

 

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Russia threatens MOL with the withdrawal of its licence for the extraction of Russian oil?
EASTWEEK
CeWeekly

2009-07-15

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On 2 July, the Russian federal agency on the use of natural resources (Rosnedra) threatened ZMB company - MOL/Russneft jointly-owned venture - with the withdrawal of the licence for the extraction of the Zapadno-Malobalik oilfield. The actions of the Russian party are a reaction to MOL rejecting the cooperation proposal with Surgutneftegas who owns 21% of shares in the Hungarian corporation. MOL does not intend to change its stance even at the price of losing Russian extraction assets and will defend its stance by tightening cooperation with other Central European corporations.

The Rosnedra agency noted that the joint venture belonging to MOL and Russneft does not comply with mining licence terms. According to the Russian agency, the utilization level of the 'crude oil gas' extracted with crude oil is lower than that under the licence (95%). The Russian agency appointed ZMB a 6-month period during which the company is to comply with the regulation under threat of the penalty of losing its licence. MOL associates the agency's stance with the Hungarian corporation's rejection of the possibility of cooperation with Surgutneftegas, who in March bought more than 21% of its shares and with blocking its representatives from entering the company's management. The Hungarian corporation does not intend to surrender to the blackmail and is declaring a continuation of its own independence strategy.

The actions of the Russian agency are an attempt by Russia to exert pressure on MOL. It was already heralded by statements made by the Russian Deputy Prime Minister Igor Sechin in June this year on using all available methods to influence MOL. The Hungarian corporation intends to defend its independence through attempts to tighten cooperation with Central European corporations. In the opinion of the chairman of MOL, relations with Poland may prove to be of special significance. Such aspirations will be favoured by the expected accession to power of right-wing Fidesz next year, who promote such actions. <boc>

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