Qatar investment in Russia to boost OPEC, non-OPEC ties

Qatar’s investments in Russia will further strengthen ties between the Organization of the Petroleum Exporting Countries and non-member oil producers, OPEC Secretary-General Mohammed Barkindo told Reuters.

The Qatar Investment Authority (QIA) and global commodities trader Glencore have bought a 19.5 per cent stake in Russia’s Rosneft, the world’s top listed oil company by output.

At a meeting with the heads of Glencore, Italian bank Intesa and the sovereign wealth fund QIA in the Kremlin on Wednesday, Russian President Vladimir Putin said Qatar would take part in hydrocarbon production in Russia.

“This investment project will further strengthen OPEC and non-OPEC relations,” Barkindo told Reuters in written comments on Thursday. “The investment (Rosneft deal) is very strategic for all the parties involved.”

In an effort late last year to boost oil prices, Russia and OPEC agreed to cut crude production jointly in the first such pact in more than a decade.

This month, Russia will reduce its output by 100,000 barrels per day as part of the deal.

“It’s teamwork. Everybody worked very hard, especially Russia,” Barkindo said.