President in Moscow for Russian Oil Talks

President Mihajíle Pétrou is meeting with Russian President Dmitry Anatolyevich Medvedev and several oil executives in Moscow this week for a series of discussions regarding the petroleum market and the price of natural gas and oil purchased from the Russian Federation.

Russia is one of the world's leading producers of natural gas, and Europe's primary supplier. Over the last few years it has gotten into a number of disputes with neighboring nations, while demanding higher prices, closer to the standard market rates. This culminated in Russia shutting off gas supplies to the Ukraine on January 1, 2006 for several days, sending a ripple effect across Europe.

The exact nature of the agreement that Pétrou is prepared to offer regarding the sale of Russian natural gas to Novegrad is not yet known. Many analysts are predicting an increase in rates, though lower than Russias demands, likely in exchange for something. Transit costs through Novegradian pipelines may be a bargaining point.

Russia and Novegrad's shares in the European oil market are likely to be discussed as well. Both are major oil producers, though Novegradian oil must pass through Prussia to reach mainland Europe, and through Russia to be sent anywhere else.