Nobody Wants to See Qatar's Economy Paralyzed

7 june 2017 | Ekho Moskvy

"Nobody wants to see Qatar's Economy paralyzed seeing how it produces natural gas for the entire world," said the chief advisor to the head of the Analytical Center Leonid Grigoriev in an on-air interview for Ekho Moskvy (Echo of Moscow) as he was commenting on the conflict between Qatar and a group of Arab nations.

Leonid Grigoryev
Leonid Grigoryev
Chief Adviser to Head of the Analytical Center

"We do not know whether it is political pressure that can go away overnight or whether it is a serious economic blockade," the expert said.

Mr. Grigoriev stressed that the role Qatar plays in natural gas exports can hardly be overestimated. "They are selling natural gas to a lot of Asian nations such as Japan, India, China, South Korea; they are also selling a lot of natural gas to Europe and the UK. The Saudi Arabia supplies them with cattle and dairy products and the United Arab Emirates is where they get construction materials from," the expert said.

The analyst is sure nobody is interested in having Qatar's economy grind to a halt, seeing how it produces natural gas for the entire world. "But if dairy products and items for tourists and hotels stop passing through the Saudi border that can cause some serious disruption in the economy. But a selective embargo of this kind where natural gas is allowed through but milk is stopped at the border would be something completely surrealistic," Mr. Grigoriev believes.

For the time being the market believes this situation is temporary and that reason will eventually prevail, the expert insists. "And I am fairly sure some kind of informal talks are underway all over the world even as we speak and then it will be announced the whole thing was just a misunderstanding," Mr. Grigoriev concluded.

Source: Ekho Moskvy (Echo of Moscow)