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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. 5(198) | 2010-02-03
Also available in PDF

Analyses

  • Moscow's policy breeds frustration in Kaliningrad

    The underlying cause of the protest came from Moscow's long-term policy of prioritising Kaliningrad's integration with Russia while attaching secondary importance to the region's development. The policy of centralisation (which has been adversely affecting the region), as well as the changes to the functioning of the Special Economic Zone (which have harmed the interests of the local elite) have caused particular discontent. 

  • Romanian project for European integration of Moldova

    Since the formation of a new pro-European government in Chisinau, which is favourably disposed towards Romania, Bucharest has made Moldova the priority of its foreign policy and adopted a more tangible agenda with regard to it.

Events

 

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Russian oil companies gain access to Venezuelan oil field
EASTWEEK

2010-02-03

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During the Moscow meeting between PM Vladimir Putin and the Venezuelan oil minister Rafael Ramirez on 1 February, the parties signed an agreement establishing a Russian-Venezuelan enterprise tasked with extracting oil in the gigantic Junin-6 oil field in the Orinoco river basin. The agreement requires massive investment and involves a political risk, due to the unstable situation in Venezuela (the question of the future of President Hugo Chavez's rule), but it nevertheless seems to be favourable to Russia because of the expected profits, and the fact that it offers Russian companies access to the US market. At the same time, however, it will negatively affect the Russian oil sector by deepening the investment deficit which the Russian oil industry is experiencing.

The Junin-6 oil field is one of the largest in the world, with estimated reserves of 5.16 billion tons of oil. Work on the field is planned to start this year, and production is expected to reach 22 million tons a year by 2017. The fact that Russian companies have been granted access to Venezuela's oil is the result of the ongoing political rapprochement between Russia and Venezuela. Russia's National Oil Consortium, made up of Rosneft, LUKoil, Surgutneftegaz, TNK-BP and Gazpromneft (each of the five holding a 20% stake) will pay US$1 billion for 40% of shares in the field, and invest around US$8 billion, including US$5 billion within the next 5 to 7 years. The Venezuelan partner is PDVSA, a state-owned company holding 60% of shares in the joint undertaking. <WojK>
 
 

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