Moscow, 26 Dec. 2005--The Organization of the Petroleum Exporting Countries (OPEC) and the Russian Federation today established a formal Energy Dialogue, just four days after a similar move was made between the Vienna-based Organization and the People’s Republic of China.

The framework for the Dialogue with Russia was set up at a meeting here between delegations headed by HE Victor Khristenko, Minister of Industry and Energy of the Russian Federation, and HE Sheikh Ahmad Fahad Al-Ahmad Al-Sabah, OPEC Conference President and Secretary General, who is also Minister of Energy of Kuwait.

“The expressed desire by both OPEC and Russia to establish dialogue on a more formal basis is an almost inevitable consequence of the steady evolution of the OPEC-Russia relationship over the past decade-and-a-half,” Sheikh Al-Sabah said in his address to the meeting.

At the talks, the two sides determined the objectives, scope, modalities, frequency, and overall structure of the Dialogue, stressing that the initiative should be guided by a process that was both pragmatic and sustained.

It was agreed that annual meetings at a Ministerial level would be convened, as well as technical exchanges, seminars, joint studies and research.

In addition, the two sides agreed to look at such issues as on-going oil market developments, energy policies, upstream and downstream investment, data flow, and multilateral issues.

A joint statement issued after the one-day Meeting pointed out that both parties - as major oil producers and exporters - had a mutual interest in predictability and transparency of all factors affecting the oil market.

It noted that OPEC activities aimed at stabilizing the oil market had received support from Russia, thus considerably boosting their effectiveness.

Russia and OPEC had maintained numerous contacts at a high level, both informally and in participation in conferences, workshops, and other events.

The release said that Russia, due to assume the Presidency of the Group of Eight (G8) industrialized states from January 1, 2006, had adopted energy security as its main strategic initiative.

“The Dialogue between Russia and OPEC offers an opportunity to provide a balanced and constructive common perspective of producers on the energy theme on the agenda of the G8 next year,” the release added.

Last week, in Beijing, the OPEC Conference President headed a delegation that forged a similar Energy Dialogue with China, one of the fastest growing economies in the world today.

That Dialogue calls for the establishment of a “balanced, pragmatic framework for cooperation and to develop on ongoing exchange of views at all levels on energy issues of common interest, in particular security of supply and demand, in order to enhance market stability.”