President Vladimir Putin is set to keep US oil companies out of a lucrative gas field in the latest sign of the deteriorating relationship between Moscow and Washington.
The Russian leader is expected to favour Norwegian companies and reject bids by America's Chevron and ConocoPhillips after failing to secure backing from the United States for his country's attempt to join the World Trade Organisation.
The tit-for-tat snub will be a blow to US companies scrambling for access to Russia's huge gas reserves at a time of high energy prices. It comes after Putin failed to resolve differences with US President George Bush over trade and human rights at the G8 conference in St Petersburg last week.
The two leaders were barbed about each other's democratic records at a tense G8 press conference. Putin later publicly praised Norsk Hydro and Statoil, the Norwegian firms that are competing with US companies for a role in developing the highly prized Shtokman gas field.
'There is very little chance the American majors will win that tender now,' a Russian oil analyst said yesterday. 'Putin was hoping WTO membership would be wrapped up in time for St Petersburg. The failure to do that is a blow to his prestige.'
A final decision on awarding the contracts - which involves extracting and transporting gas from Shtokman in partnership with Gazprom, the Russian state-controlled company - was also originally expected before the G8 summit but has been postponed until next month at the earliest.
http://observer.guardian.co.uk/business/story/0,,1826629,00.html?gusrc=rss