ABSTRACT

Russia has long been a potential dream partner for the Organization of the Petroleum Exporting Countries (OPEC). Russia could greatly enhance the cartel’s market power and has several allies among the OPEC member states. All member countries of OPEC have national oil companies that can either determine the policy for their governments or follow a policy dictated by the governments. Post-Soviet Russia inherited a strained relationship with OPEC from the USSR. Russia’s new cooperation with OPEC was motivated by both political and economic considerations. In 2018, oil production in Russia accelerated, defying the Russian officials’ declarations of solidarity with OPEC. OPEC was determined to continue playing along with Russia and reduce the likelihood of abrupt termination of the cooperation. In late 2017, the Russian government was considering gradual abandonment of the cooperation with OPEC.