Gulf crisis unlikely to impact OPEC output cuts, Russian economy minister says
| AA Photo


Gulf crisis between Qatar and the four Arab states, led by Saudi Arabia, would not affect Organization of Petroleum Exporting Countries' (OPEC) oil cap agreement, Russian Energy Minister Alexandr Novak said on Monday.

Speaking on the sidelines of 22nd World Petroleum Congress in Istanbul Novak said that he does not foresee any problems or dispute on the OPEC agreement to cut production due to the crisis between Qatar and some other Gulf countries.

In May 25, OPEC members agreed to extend their previous agreement by nine more months to March 2018 to lower oil output. The members agreed to continue to lower oil production by 1.2 million barrels per day (bpd) down to 32.5 million bpd.

Russia agreed to cut 300,000 barrels of daily oil production in line with OPEC's latest accord in May 2017.

"We had the opportunity to discuss this issue with Qatari minister here today. He also expressed Qatar's determination to fulfill its responsibilities that it took in December," he said.

Novak held a bilateral meeting on Monday with Qatar's Minister of Energy and Industry Mohammed Bin Saleh Al-Sada during the 22nd World Petroleum Congress.

Starting from June 5, Bahrain, Comoros, Egypt, Maldives, Mauritania, Saudi Arabia, United Arab Emirates, Yemen's internationally backed government and one of Libya's three governments have cut off diplomatic ties with Qatar over accusations that the Gulf nation funds militant groups – charges Doha calls baseless.

Several other Muslim nations also downgraded their diplomatic ties with Qatar.

The Saudi-led anti-Qatar axis issued an ultimatum earlier, including demands Qatar shut down a Turkish military base in Doha, shutting Al Jazeera and curbing ties with Iran.

Qatar rejected the 13-point list of demands its neighbors made for lifting their sanctions.

Novak also provided some details regarding the Akkuyu nuclear power plant, which will be the Turkey's first nuclear power plant, and said that Russian and Turkish officials discussed the project.

"First unit of the Akkuyu nuclear power plant is to be commissioned by 2023, which is centenary of the Turkish Republic," he said.

On June 19, Russian state-owned nuclear power company Rosatom signed an agreement with Cengiz-Kolin-Kalyon, a Turkish consortium of contracting conglomerates, to sell a 49 percent stake in Turkey's Akkuyu nuclear power plant project.

The plant will have a capacity of 4,800 megawatts in four units and a working lifetime of 8,000 hours per year.