Global energy crisis consequence of plot between Russia, OPEC+

This is stated in a study by the Ukrainian Center for Defense Reforms, excerpts from which were published by Guildhall, Ukrinform reports.

According to the authors of the study, today, Russian aggression against Ukraine is more and more often called one of the key factors of energy crisis, while high energy prices are positioned as a forced payment by the West for countering Russian invasion. This approach, experts say, is a false definition of the causes behind the crisis, which makes it impossible to resolve it.

“The real cause of the energy crisis, which began long before February 2022, immediately after the end of the acute phase of the Covid-19 pandemic, is not Russian military aggression against Ukraine, but the hybrid aggression of the Russian Federation against the West in general, the infamous Russian weaponization of energy resources. The real tool and generator of this crisis, as in the case of the energy crisis of 1973, is the Russian-inspired international cartel of oil producers (“OPEC +” - ed.), which agreed among themselves to limit supply on the international market, which leads to to a constant rise in prices,” the research says.

A historical parallel is given, when in 1973 the reason for weaponizing oil was the support for Israel by Western nations during the Yom Kippur War. In order to avenge the states concerned, the Arab countries, united in the Organization of Arab Petroleum Exporting Countries, conspired to reduce oil production and imposed an embargo against nations that supported Israel, which led to a threefold hike in oil prices.

The authors note that the situation today is more complicated, since such conspiracy includes not only Arab countries, but also many others that have united in OPEC +, including the Russian Federation. This organization has been creating an artificial deficit since 2016, limiting oil production, which leads to an increase in energy prices.

The CDR emphasizes that almost all OPEC+ countries either vote against UN resolutions condemning Russia's aggression or abstain from voting.

“In the presence of such a cartel, neither attempts to stop the energy crisis, nor those to limit Russia's oil and gas revenues have any chance of success. As long as the world market is divided among the participants in the plot, prices will remain high, and Russia will maintain its share,” the article says.

“At the same time, cartel agreements are illegal at the level of national legislation, and in many countries, as well as in the EU, they are seen as a criminal offense. In order to stop the energy crisis, reduce prices and deprive Russia of oil and gas superprofits, from which the Kremlin finances military aggression against Ukraine, it is simply necessary to ban cartel plots at the international level and start applying sanctions against governments and companies involved,” the experts said.

It should be recalled that on October 5, the OPEC+ members decided to significantly reduce oil production amid the insistent demands of Russia and Saudi Arabia.

This was the largest cut in oil production since the COVID pandemic in 2020, which has already been in effect since November.