CCEE Policy Brief No. 38: “Russia-Saudi Arabia Price War: A Look through its Collateral Damages”

Over the weekend of March 7-8 Saudi Arabia declared economic war on Russia’s oil industry. Moscow’s decision not to take up Riyadh’s request to curb oil production and to establish a floor under falling prices dissolved the joint Russian-Saudi efforts that in 2016 led to the OPEC+ cartel. Behind this breakup, Russia hoped to scuttle the American shale industry and undermine Washington’s most powerful and used tool on the international level: sanctions. This brief aims at framing the 2020 Russia-Saudi Arabia price war, shedding light on its short-term outcomes. The finding indicates that the moves of this negotiating strategy could have dangerous collateral effects for the major energy actors. Among them, the OPEC members and the Caspian Region countries.

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