The Natural Gas Europe: "European energy companies renew relations with Russia"

The Natural Gas Europe edition specializing on the analysis of the energy market in Europe wrote today that the European energy companies renew relations with Russia. On September 3-5, on the latest East economic forum in Vladivostok, Russia's Gazprom signed three large deals with major energy companies in Europe. This rapprochement happened for the first time after the EU imposed sanctions against Russia in 2014.

One of the most important events of the forum was a revival of the profitable asset swap between the Russian energy giant and Wintershall, a division of the German BASF. The transactions concluded in Vladivostok show that neither German, nor Austrian companies  intend to stop their cooperation with Russia. In addition, it is apparent that the role of Ukraine as a country, through which the transit route of gas goes to Europe, will eventually be reduced to a minimum.

The second agreement reached in Vladivostok implies joint European consortium’s building of the second  Nord Stream pipeline under the Baltic Sea. This will enable Russia to deliver gas directly to Germany, bypassing Ukraine. The consortium includes BASF, the German energy company E.ON, the French electricity company Engie, the Austrian oil and gas company OMV, as well as the multinational Royal Dutch Shell. Despite criticism from Poland, the Baltic states and Ukraine, Europe intends to cooperate with Russia, since it is the only opportunity to avoid an energy crisis in the region.

Third, the agreement reached in Vladivostok involves the participation of Austria's OMV in development of Urengoy’s deposits. This project is important in terms of the involvement of the European companies in the Russian investment market. Such cooperation between Europe and Moscow is a very important step in overcoming the  last year’s difficulties. The EU needs the Russian gas, and Russia in turn needs the European technology. The last forum in Vladivostok has  proved once again the importance of economic partnership, which can and must be achieved in spite of the political differences.

The US OILPRICE.com analytical news portal wrote that the Iranian oil can hurt the global energy market. Most likely, the efforts made by the US President Barack Obama will be sufficient so the deal on Iran's nuclear program to be approved by the US Congress. Removing sanctions against Iran in exchange for the freezing of the activities of the state in the field of nuclear energy will lead to a revival of the Iranian oil industry. This in turn means that the state will be able to reach the level of oil production of 500 thousand barrels per day immediately after the lifting of the international restriction.

Current volatility of the market  is creating new opportunities for a new generation of investors, who prefer to invest in long-term and perspective projects. This applies particularly to Iran. Many Western countries, including the EU are interested in joint projects with Iran. The oil production in US is decreasing and Iran due to the lifting of sanctions and with the help of foreign investors will be able to find its niche in the energy sector, surpassing America. A similar scenario was expected in June of this year, but then the US government expected that Iran would be not only strategic, but also economic ally of the US. Most likely, the American plan will not come true, because the Iranian leadership has repeatedly stated that the return of Iran in the international arena will happen regardless of Washington, and the White House will never be allowed in the internal affairs of the country. If Iran succeeds to establish the oil production and its further implementation as soon as possible, it is likely that the world energy market will see significant fluctuations once again.