Integration of the CIS countries energy branch

Ministers of energy of the countries of Commonwealth of Independent States by the end of 2002 have to discuss creation of Energy Council of the CIS. Before the meeting, which will be held in December, ministries have to finish all preliminary work.

The competition in the world market of energy resources becomes more aggravated; therefore consolidation of the CIS countries in this key sector should promote their strengthening on the market. Plans of integration are especially important now as, increasing export of petroleum, Russia faces discontent from the OPEC countries, which lose share in the market.

Being united, the CIS countries will operate together against the common competitors in energy sphere, having advantage of "multiple effect", acquired from economy of many states.

The purposes of creation of Energy Council of the CIS:

? common market of fuel
? increase of energy safety of the CIS countries
? creation of corporations for development of oil and gas fields
? wider diversification of energy sources deliveries, normalization of payments, development of investment climate in energy sector and expansion of business relations
? coordinated policy of the CIS countries in energy sector, joint development of energy balances forecasts with possible energy savings
? investments in development and production of energy resources, infrastructure, including the projects providing reliable functioning of energy transfers, through the territories of the CIS countries
? encouragement of development of new technologies, including effective and non-polluting
? monitoring of condition on thermal power stations in the CIS countries
? harmonization of tariffs for transportation of petroleum
? development of the legislation in the CIS countries in energy sphere

In opinion of analysts, Russia and Kazakhstan will benefit the most from integration, which can increase export of the energy resources through territory of the surrounding states, as from 12 countries of the CIS only they have serious oil-and-gas stocks and produce superfluous amount of electric power. The share of the CIS is 18 % of world reserves of petroleum, from which to Russia belongs 12 %. The countries of the CIS have 40 % of world reserves of gas (Russia - 35 %). Benefit of other states from association consists of incomes from transit and satisfaction of their own needs due to import.

The structure of Council will include secretary and some working groups on petroleum, gas, coal and electric power, which will be responsible for realization of accepted decisions. Prepared documents by Energy Council of the CIS countries will be offered regularly for consideration on the meetings of country leaders of participants.



Author: Sergei Zanin