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What Transparency Could do for Russia

Gregor Macdonald has an excellent blog post highlighting an interesting proposal for Russia in these times of economic crisis: Oil Glastnost.

One gets the sense Russia wants to conceal its enormous dependence on oil and mineral exports, and the how these were vehicles to build up monetary reserves. It’s as if a deeply embarrassing truth has been revealed, and Russia wants to hide its face.

I say, no need mother Russia. No need.

Instead, Russia should embark on a robust transparency campaign, reminding the world that they and they alone were responsible for all the growth this decade in non-OPEC production. Russia should further explain to the world they are now as equally important to global oil supply as Saudi Arabia, and only historical, calcified thinking globally prevents recognition of this simple truth. Most importantly, Russia should speak frankly about the rising cost-floor to bring on the incremental barrel, and explain to the world that cheap oil can only be available during brief price crashes. In short, Russia should say: Yes, we are vulnerable. But you are too.