Moscow (Platts)--23Dec2008

Russian energy minister Sergei Shmatko said Tuesday the world's leading
energy powers should coordinate action to stabilize energy markets.

"Only coordinated action by [the world's leading energy powers] will
bring an end the trend toward crisis, stabilize the market and give a positive
impetus to the energy industry," Shmatko told the Gas Exporting Countries
Forum in Moscow.

He said he expects the GECF to make significant progress on formalizing
the organization at its Tuesday meeting.

"I am sure that today we will be able to reach the key agreements on the
issue of the forum's institutionalization," Shmatko said.

"In this respect, we are paying significant attention to supporting the
stability of the world energy market," he said, adding that attention would be
paid to the dynamics of oil and gas prices to prevent drastic fluctuations.

"These are caused sometimes not by objective economic or political
factors but speculative actions by market players," he said.

The minister said actions would be effective only if undertaken "by all
our partners," and that the main goal for the GECF members in the short term
is to have stable and secure demand and supply of energy resources.

"Our efforts in the long term should be focused on the harmonization of
our energy policies in order to raise the energy security of every participant
of the gas market," he said.

"I believe that the exporting countries will be able to find a sensible
balance between competition and harmonization of energy policies [by different
countries], and this will secure stable energy development for the long term,"
Shmatko said.

He also said cooperation within the forum does not envisage action
against any third countries. "On the contrary, we will try to take into
account the full demands and wishes of all energy market participants, at the
same time securing own national interests," he said.

"Today we must resolve the issue of transforming the forum into a fully
legitimate international organization with clear goals and tasks," he said.

Russia is ready for "very close cooperation," he added.