Reports that Saudi Arabia and Russia have been negotiating cutting oil production in exchange for the Kremlin changing its stance on Syria are untrue.
The chairman of the Russian State Duma’s International Committee Alexei Pushkov said no negotiations took place with Saudi Arabia to decrease oil production in exchange for Moscow’s refusal to support Bashar al-Assad.
“There were no negotiations with the Saudis to decrease oil production in exchange for Moscow’s refusal to support Assad. Hoax.” – Pushkov wrote on his Twitter account.
The Saudi monarchy is at odds with al-Assad and is believed to be backing anti-government rebel groups in Syria.
Global oil prices started to plunge last summer due to oversupply. Prices dropped further after the Organization of the Petroleum Exporting Countries (OPEC), whose 12 member states account for some 40 percent of world’s oil output, decided not to cut production in late November. The decision was allegedly a bid to squeeze cheap-oil producers out of the market. The Saudis, however, argued that the slump in oil prices reflected global supply and demand, stating that they would never use trade to influence geopolitics.
The Russian economy, like the economy of many oil producing nations, is highly dependent on oil revenues and has slowed down in the past months following the low oil prices.
By Sputnik News
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