Middle East > Syria > Moscow strengthening its position in the area

Syria: Moscow strengthening its position in the area

2014/01/05

Russia and Syria on Christmas Day reportedly entered into a 90-million-dollar, 25-year oil prospecting transaction.

''With a move that remained unnoticed in the midst of Christmas festivities, Putin consolidated Russia's position in one of the world's most interesting new regions in terms of oil and hydrocarbons'', the Financial Times newspaper wrote.

The arrangement between Russian company Soyuzneftegaz and Damascus was reportedly signed in the Syrian capital, and ''grants the Russians prospecting rights over a 2,190 square-kilometer section of Syrian territorial waters'', according to Lebanese newspaper Daily Star. ''This is the initial-ever arrangement for oil and gas exploration in Syrian waters''.

The relatively recent discovery of the Leviathan gas field in the eastern Mediterranean has caused area powers inclunding Cyprus, Israel, Lebanon, Syria and Turkey to jockey for position. Syria and Lebanon have accused Israel of intent to steal the Lebanese quota, while Israel and Cyprus signed a transaction to exploit resources in waters between their coasts: that transaction stoked the rage of Ankara, because the northern occupied portion of Cyprus, which only Turkey recognizes, was not part of the consultations.

The real extent of recently discovered oil and gas fields is from presently on to be determined: it would take significant investments, but political instability in the area has kept major international oil companies at bay. ''The advent of Russia could be a game-changer'', wrote Financial Times analyst Nick Butler. ''Moscow has surprisingly cordial relations with Israel, and significant interests in Cyprus''.

''For a lot of in the region, Russia appears as a additional reliable ally than the US and Europe, which appear to be in a withdrawal phase. Putin's advance is filling a void'', Butler wrote.

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