Putin to Discuss Energy with Iraqi PM in Moscow

Russian President Vladimir Putin will host Iraqi Prime Minister Haidar al-Abadi in Moscow on Thursday to discuss ways to strengthen energy ties, the Kremlin said on Monday.

 

Oil and gas sales account for about half of Russia's state budget revenues. The oil price has fallen sharply from a June 2014 level of $115 per barrel, though at around $66 it is off earlier lows. The weakness of prices has forced Moscow to seek closer ties with the Organization of the Organization of the Petroleum Exporting Countries (OPEC), which includes Iraq.

 

"In the course of the coming meeting priority will be given to increasing the whole complex of bilateral cooperation, including in the trade, investment and energy spheres," the Kremlin said in a statement.

 

So far, Russia has refused to cut oil production voluntarily to support prices, saying it would be unable to quickly restore production if the cuts were implemented, mainly due to the vast country's harsh climate.

 

Saudi Arabia and other OPEC members have said they will consider cutting output only if non-OPEC members such as Russia agree.

 

Russian Deputy Energy Minister Kirill Molodtsov said last week Russia was holding consultations with OPEC before a meeting of the oil producers' group in June.

 

At their meeting, the OPEC countries are set to maintain current production levels, as Gulf states continue to focus on market share and as the current rally in crude prices mutes calls from other members for supply cuts, according to several OPEC sources.