Vladimir Putin and President
of the Republic of Equatorial Guinea Teodoro Obiang Nguema
Mbasogo took part in the plenary session of the Russian
Energy Week International Forum.
This year, the 7th edition
of REW, themed Energy Cooperation in a Multipolar World,
brought together over 4,000 participants from more than 50 countries.
* * *
President of Russia Vladimir Putin: Ladies
and gentlemen, friends, colleagues, I am delighted to welcome you
all to Moscow, to the 7th Russian Energy Week.
This forum has long become a permanent
fixture in the business schedule of the global energy
sector, once again bringing together the heads of leading companies
and industry organisations, government officials, prominent specialists,
experts, and journalists.
This year, more than 4,000 participants from
over 50 countries will be discussing the most important issues
on the energy agenda, and the challenges that both
producers and consumers of energy resources are facing around
the world.
In addition, this forum is
an excellent opportunity to establish new contacts, make deals
and exchange views on the long-term prospects
of the fuel and energy sector.
Modern energy is one of the key
sectors enabling global development. Its smooth operation based
on transparent and predictable rules, when deposits are developed
and resources are extracted, processed and supplied
to the market without interruption, creates a solid foundation for economic
growth, social progress, and improvement of the people’s living
standards.
Unfortunately, this truism is being
increasingly disregarded by those who resort to illegal sanctions,
believing that such tactics can give them benefits and advantage
in the energy market.
What are we talking about here? Historically,
the main elements of the supply infrastructure
of the global energy market happened to be consolidated
in the West. I am referring to innovative mining solutions,
logistics, insurance of resource supply, and the system
of payments for these operations. Taken together, this constitutes
a global energy platform on a par with technologies.
The Western elites believed that they
could close access to these services for the countries they
regard as inappropriate politically, thereby pushing them
to the curb of progress, or more precisely, squeezing them
out of the market. I believe that many would agree with me that
all these instruments are being used above all for unfair competition.
The reason for this is obvious:
the West does not want competition because it cannot handle it, because it
loses the competition if it plays fair, which is why it resorts
to discrimination presenting it as so-called Euro-Atlantic
solidarity, the protection of human rights, and the like.
There are many other pretexts.
What does this lead do? By closing access
to its platform, the West has only encouraged the development
of alternative solutions, alternative logistics, insurance
and international settlement systems, as well as technological
innovations. Of course, it is not a simple process, and it
involves hard work by those involved, but the process is going
on progressively.
I would like to emphasise that these
solutions are mostly immune to external influence. And since they are
being gradually shaped on a fundamentally new technological basis,
they are becoming more effective by the day and, which is even more
important, more widespread, first of all in the countries that
are gathering momentum and demonstrating a high economic development
pace.
I have said many times that
the modern world has entered an era of fundamental
and irreversible changes. A multipolar development model is emerging,
starting a new wave of global growth for the rest
of the 21st century. And this growth will be
concentrated not in Europe or North America. Of course,
the European and the US economies rely on a very solid
and powerful foundation, and of course, they will keep running,
and it will be quite a while before they run out of steam
completely. That said, Europe and North America will no longer operate
as the main growth drivers. They are gradually losing their weight
in the global economy. This growth will shift to BRICS countries
and the states that are willing to join our association
and view equal cooperation with due respect for national interests
as the promising way to proceed.
I have already said this before but let me
repeat it for this audience one more time. These are objective,
international data. In 1992, the G7 accounted for 45 percent
of global GDP, while BRICS had just 22 percent.
As of the end of 2023, the G7’s share declined
to 30 percent, while BRICS increased its share to 36 percent.
And this trend is gaining traction.
Let me note right away that, according
to international experts, several BRICS countries, including
the People’s Republic of China, the Russian Federation,
the United Arab Emirates and Saudi Arabia will enjoy positive, albeit
quite modest, economic trends. Once again, this is what experts have been
saying, including international experts. At the same time,
the countries of what we call the Global South will lead
the pack in terms of – I would like to stress it −
economic growth rates. For now, their per capita GDP is quite low,
and so is the share of people living in cities, but they
have a high birth rate. This group primarily includes countries
in South and Southeast Asia, as well as Africa, including
Equatorial Guinea, whose President, His Excellency Teodoro Obiang [Nguema
Mbasogo] is taking part in this plenary session. I would like
to ask you to greet him. (Applause.)
To reiterate, BRICS – and Russia
is chairing this organisation this year – sees its mission
as combining economic capacities and creating a broad space
of opportunities for everyone who is interested in harmonious
and mutually beneficial cooperation. I would like to emphasise
that it is mutually beneficial, that is, cooperation that benefits
the interests of all our nations.
We intend to build an effective
development platform for countries that are promising growth centres now
or will become ones – a platform free from malign outside
influence, with unimpeded access to resources, technology, personnel,
finance, trade and investment. In particular, I am referring
to the energy sector, which, as I said, is crucial
for economic growth and social progress.
Russia, despite the challenges it is
facing – everyone knows what they are, and in fact, everyone is
facing challenges, so we have our own, too, and they are serious
enough – nevertheless, Russia remains one of the leading
participants in the global energy market. Over the past two
and a half years, Russian companies have successfully redirected
their exports of oil, petroleum products, and coal. Previously,
the Asia-Pacific region accounted for about 39 percent of our
energy exports, but by the end of last year, its share exceeded
60 percent.
In general, friendly countries account
for over 90 percent of Russia’s energy exports today.
At the same time, in physical terms, with the exception
of natural gas (it is also clear to experts why), they have
practically remained at the 2021 level.
Russia is expanding the geography
and scale of its energy cooperation. New routes are being created
to connect to fast-growing receptive markets, including
the countries of the EAEU, the CIS, and southern
Eurasia. Gas exports through the Power of Siberia pipeline are
increasing, and LNG exports continue to grow.
In fact, LNG from the Russian Arctic
has become one of the anchors, the main type of cargo
shipped via the Northern Sea Route. We will definitely continue
to develop our own LNG services and technologies, create centres
for its transhipment, storage and trade. We will ensure enough
tankers for our LNG projects; we will definitely augment the capacity
of our Arctic and Eastern seaports, improve communications
and enhance the Northern Sea Route infrastructure.
My Russian colleagues know what I am
talking about – how they are being roadblocked in what they do.
Indeed, this partially hinders the implementation of our plans, but
they will be implemented, nonetheless.
In general, we are expanding international
transport corridors. Freight traffic on these routes is scheduled
to increase by at least 50 percent by 2030 compared
to 2021.
In particular, we are further developing
the Eastern Operating Domain. The throughput capacity
of the Baikal-Amur Mainline and the Trans-Siberian Railway,
which is nearly 180 million tonnes this year, will grow to 270 million
tonnes in ten years, which will allow us to transport large volumes
of fuel and energy products and refined products from our
regions in Siberia to markets of the Global South.
Financial infrastructure, or more precisely,
the system of payments for Russian exports, is a separate
matter. There are certain difficulties here. To resolve that problem, we
are switching to settlements in national currencies, which is
of great interest to our partners. There are many problems
in this sphere as well, which we are aware of, but we are gradually
settling them. For example, the share of the ruble
in our foreign trade transactions is approaching 40 percent. Between 2021
and 2023, the share of the ruble in export payments
has grown nearly threefold to 39 percent, and the figure reached
39.4 percent in the first six months of 2024.
At the same time, as part
of our cooperation with BRICS countries, we are involved
in the creation of our own payment configuration that will
provide conditions for servicing all foreign trade efficiently
and independently.
I would like to add that Russian
energy exports help friendly countries restrain the growth of import
prices, maintain their energy security and economic stability,
as well as compete more successfully in the global market.
We are resolved to continue to move
forward, and we will not limit cooperation to trade
in resources. Russia is ready to help strengthen
the technological sovereignty of its partners in the energy
sphere by creating comprehensive scientific and production chains.
This is what we are doing in terms of cooperation
in the peaceful use of nuclear technology. Rosatom is building
nuclear power plants abroad and simultaneously training local
personnel – engineers, workers and managers for the new
facilities. In fact, we not only build power plants but, as Rosatom
says, create new power generation and economic sectors for our
partners.
I am confident that this combination
of intellectual and resource potentials of different countries
and our advance to new levels of international cooperation will
create additional opportunities for the national school
of research and for developing engineering, services and,
of course, the entire energy sector in Russia.
Colleagues,
Last year’s energy consumption in Russia
again set a new record that exceeds the Soviet-era indicators. You
are well aware that growing energy consumption is the most unmistakable
sign of economic growth.
At the same time, our energy system,
one of the world’s largest, not only meets the growing demand
from businesses, the economy, and the social sphere, but also is
in the process of qualitative transformation. Over the past
15 years, the total capacity of the Russian power industry has
increased by 18 percent, while the power plants themselves have
undergone an in-depth overhaul, becoming more advanced, effective,
and environment-friendly.
For example, natural gas,
an ecologically clean and effective hydrocarbon, accounts for 48
percent of Russia’s energy balance and for over 85 percent, if
we throw in the nuclear and hydraulic power industries that have
a minimal carbon footprint.
What I mean is that our energy balance is
one of the “greenest” in the world; this is
an absolutely obvious fact. Unlike certain Western countries that use
the climatic agenda to promote their essentially neo-colonialist
interests, we are implementing a fair and orderly energy transition
in practice, a transition that takes into account our natural conditions,
the socioeconomic development of our cities and the entire
national territory, as well as the structure of this
country’s energy and fuel balance.
We will continue to follow this approach
in the future. We will continue to upgrade and strengthen
our energy system, which has entered upon a stage of retooling
and conversion to new technological solutions.
Among other things, we are creating
a substantial scientific and practical potential
in a number of promising areas, such as renewable energy
sources, small nuclear power plants, thermonuclear fusion, as well
as hydrogen generation and production of motor vehicles, ships,
and rail transport burning this kind of fuel.
True, research and technologies are
at different stages of implementation in this regard. But
to reiterate: it is important to be aware of this outlook
and make plans for the future.
As you know, I have instructed
the Government to extend the planning horizon for Russia’s
energy strategy until the middle of this century. This strategy sets
forth an ambitious and comprehensive plan to expand our
generating capacity at a national scale. All these undertakings imply
long cycles, and we must be forward-looking when working on them,
and this is exactly the way we have been treating them.
Major, system-wide projects with long investment
cycles will define these efforts, including, as I have already said,
projects to master new technology, develop deposits and build
the necessary infrastructure, power stations and grids.
I would like to remind
my colleagues in the Government that we will need to draft
a revised Energy Strategy in the coming months, and then
carry it out, one step at a time, by focusing on our
priority long-term objectives to develop Russia’s fuel and energy complex.
As far as I know, the Government is currently in the process
of coordinating these parameters among the agencies.
I talked at length about these
priorities a year ago, during the previous Energy Week. Let me remind
you that our key priority is to satisfy demand on the domestic
market and to ensure stable and affordable power supplies
to our regions, cities and companies. Let me put a special
emphasis on the fact that the fuel and energy sector must
play its role in ensuring that all the 2030 national development
goals are fulfilled.
According to the available estimates,
power consumption will grow at an [annual] rate of two percent
until the end of this decade, which is about the same level
as for the rest of the world. During this period, we
intend to launch 27 gigawatts of new power generating capacity, including
thermal, hydro and nuclear power plants.
We will promote connectivity between
the power grids in the Urals, Siberia
and the country’s east, while paying special attention
to supplying power to Russia’s Far East. Power consumption there has
been growing at a rate exceeding the national average,
and it is expected to increase even more as manufacturing
expands and as new housing, infrastructure and social facilities
are built. Our energy sector must be able to meet this demand, including
by using modern coal power generation, with low environmental stress.
I have already issued instructions
to draft a long-term development programme for the Far
Eastern Federal District’s energy sector. Just like the national Energy
Strategy, it will cover a period until 2050. I would like to ask
the Government to fast-track the approval procedures
for this document.
Increasing the reliability of power
supply to the regions is a separate matter. This year, we have
applied a fundamentally new approach: we have introduced territorial grid
organisations. Starting in 2025, these organisations will operate
in each region of the country and will be responsible
for power supply. They will also take over abandoned facilities
(unfortunately, there are some) and address the consequences
of accidents on networks, among other responsibilities.
I would like to ask
the Government, together with the heads of the Russian
regions and energy companies, to analyse the effectiveness
of territorial grid organisations on a regular basis and to draw
up a plan for increasing the reliability of power supply
for each region, with transparent financing sources developed
in advance. All tools must be used, from regulatory agreements
and infrastructure loans to concession mechanisms and service
contracts.
I would also like to mention
the gas industry, which is undergoing serious changes. It is not only
reorienting exports from the west to the east but also
significantly increasing supply to the domestic market, including
under the social gas supply programme launched in 2021, which is
progressing at a good pace. I would like to thank
the Gazprom management for this. Of course, our largest gas
company, Gazprom, plays a leading role in this.
I would like to ask the company
and its management, together with the Government, to prepare
a ten-year plan, the implementation of which will ensure
the corporation’s sustainable development and the creation
of infrastructure necessary to change the geography of supplies.
Let me reiterate, it must take into account our extensive plans to supply
gas to all Russian regions and increase gas processing within
the country.
We all understand what I am referring
to when I discuss redistribution of routes. Those who were once
our buyers have decided to give up our relatively inexpensive energy
resources and switch to a more costly alternative. Well, that is
their choice; let them rely on this expensive resource.
Next, the growth of hydrocarbon
processing volumes at Russian plants and complexes is another
priority task for the domestic fuel and energy complex. It is
crucial to provide a raw material base and the necessary
resource extraction. We have already identified special tax incentives
for this.
Thanks to state support measures, offshore
fields, such as Prirazlomnoye in the Arctic and projects
on Sakhalin, are being developed. Hard-to-recover reserves are being
developed: the Palyanovskoye oil field in the Khanty-Mansiysk
Autonomous Area and the Yuzhno-Neprikovskoye field
in the Samara Region. New oil and gas provinces are being
introduced in Eastern Siberia and the Arctic. I mean large
projects, like Vostok Oil in the Krasnoyarsk Territory,
and the Utrenneye and Shtormovoye fields on the Gydan
Peninsula. The coal mining centre in the Far East is expanding
its capacity. The Pacific Railway will also start operating next year. It
is a private railway going from the Elga field in Yakutia
to the port of Elga in the Khabarovsk Territory.
Let me repeat, it is essential that
the exploration of Russia’s unique reserves makes it possible
to develop domestic processing enterprises, creating maximum added value
right here, in Russia.
We have launched a state programme
to upgrade oil refineries. Its goal is to provide the economy,
cities, all populated areas and people with high-quality fuel, lubricants,
bitumen, and other products. I would like to ask
the Government to closely monitor how this programme is implemented
and to work specifically on every enterprise,
on the timing of repairs, and renovation
of production.
Special focus must be placed
on the development of oil, gas, and coal chemistry.
According to estimates, the demand for these products will only
grow both in Russia and around the world. Moreover, these
sectors are highly profitable. The price from raw materials to final
goods in the chains can grow up to 12 times.
Russia implements projects in this sphere,
which are large even by global standards. The country’s largest
petrochemical plant, ZapSibNeftekhim, is operating, and the Amur Gas
Chemical Complex, which will become the most powerful Russian enterprise
for the production of basic polymers, is being built. There are
other large projects as well. It is important that there be more such
projects, that new production facilities are opened in various regions
and modern, well-paid jobs are created. I have already drawn
the Government’s attention to this and would like to repeat
it again: these business initiatives must be supported.
Furthermore, it is clear that, under current
conditions, the reliable operation of production fields, pipelines,
refining facilities, and power plants, as well as the fuel
and energy complex in general, is dependent
on the availability of our own specialists, technologies,
and competencies in the equipment used for producing
and delivering resources, power engineering, and so on.
A national project to be launched
next year will serve as a major system-wide instrument
of support for domestic initiatives. It is called New Nuclear
and Energy Technologies. This national project will set ambitious goals,
namely, to consolidate Russia’s global leadership in the nuclear
sector. It aims to consolidate that leadership, as our current
standing is indeed global. This is evident from the volume of work
that Rosatom, our leading company, is doing.
Ensuring the country’s technological
sovereignty across all spheres of the fuel and energy complex is
the goal of this new national project. I ask my colleagues
in the Government, together with our business and academic
communities, to elaborate all the details of this national
project with a view to launching it without delay.
Colleagues,
Russia’s fuel and energy complex is
a modern, dynamic industry. It successfully meets current, including
global, challenges and strengthens the raw materials, technological,
and industrial sovereignty of our country; it supports
and develops trade and cooperative ties with responsible foreign
partners.
Russia is fulfilling its obligations
to supply energy resources to the world market and plays
a stabilising role within it, participating in such authoritative
formats as OPEC Plus and the Gas Exporting Countries Forum.
Incidentally, we cooperate with the country represented by our guest
in both organisations, and we will certainly continue this
collaboration with our partners.
I am confident that the strategic
and long-term tasks facing our energy industry will undoubtedly be
accomplished. This means that our energy companies, their workforce,
and the industry as a whole will be provided with stable
and reliable work for many years to come. They will make
a significant and tangible contribution to achieving Russia’s
national development goals and improving the quality of life
for our citizens. And, of course, they will continue to contribute
to balancing the world energy markets for the sake
of sustainable global development.
Thank you.
President of the Republic
of Equatorial Guinea Teodoro Obiang Nguema Mbasogo (retranslated):
Your Excellency President of the Russian Federation Vladimir Putin,
Your Excellencies heads of delegations
and representatives of the organisations present in this
audience,
Ladies and gentlemen,
It is a great honour for me
to speak at the 7th Russian Energy Week
International Forum themed “Energy Cooperation in a Multipolar
World.”
We are grateful to the hosts
for inviting Equatorial Guinea to participate in this exchange
of experiences and best practices to address challenges
in the energy sector and to expand international
cooperation, being mindful of the important role that the energy
sector plays in the national economies.
I would like to express my deep
gratitude to the Government and the people
of the Russian Federation, as well as to my good
friend President Vladimir Putin, for the warm welcome and hospitality
extended to us the moment we arrived in Moscow, a wonderful
city with a long history.
Your Excellency, ladies and gentlemen,
This forum is taking place
in an international setting marked by economic
and financial crises sparked by a decline in hydrocarbon
prices and the repercussions of the COVID-19 pandemic,
which we must address as a team and stand together as we
seek solutions.
Indeed, we live in an era
of major changes and challenges. We are faced with the realities
of a world in transition in terms
of the structures that bolster our economy. In this context,
the energy sector plays a crucial role as a pillar
supporting our state. Considering this, our current positions will have
long-term consequences for generations to come.
Equatorial Guinea is determined to deepen
energy cooperation with Russia and other friendly countries. Our country
is rich in natural resources, such as oil and gas, and is
open to forging strategic alliances with willing partners.
We strive to build a future where our
respective economies will benefit from genuine cooperation based on mutual
trust and shared benefits, which will be advantageous for our
societies.
This is why we encourage Russian companies
and companies from other friendly countries to cooperate with us not
only in energy production, but also in the exploration
and development of our oil and gas resources. Such partnerships
should not be limited to the production of resources but should
include knowledge transfer, technological training, and the promotion
of modern energy infrastructure development.
Our goal is clear: we want Equatorial Guinea
and our partners to streamline the use of our respective
energy resources while using the latest technologies available
in this sector.
Your Excellency,
Ladies and gentlemen,
While discussing the energy sector’s
progress, we cannot overlook one of the most pressing problems facing
the world: energy poverty. Millions of people do not have reliable
access to energy. To address this, the Republic
of Equatorial Guinea is cooperating with its African partners, working
as part of the strategic partnership and the Central
African Pipeline System finance committee. We invest in building energy
infrastructure to stimulate the economy and improve
the living standards of our societies.
Equatorial Guinea believes that energy
cooperation should be guided by a fundamental principle:
to ensure the stability of energy markets, protecting
the most vulnerable segments of the population from market
volatility.
On the other hand, Equatorial Guinea
strongly supports strategies and efforts to stabilise global energy
markets. In this regard, we call on all international stakeholders
to work together to reduce uncertainty and promote appropriate
market policies. Energy should not be a weapon that divides us, but
a means to achieve common prosperity. It is our collective
responsibility to ensure that the least developed countries are
safely protected from fluctuations in energy prices and are not
excluded from the benefits of energy and advanced technology.
In addition, while, as oil producing
countries, we all share the same markets, not all of us enjoy
the same advantages. To address this, the national oil company
of Equatorial Guinea, GEPetrol, took over the management
of several oil projects that were previously managed by ExxonMobil.
The new arrangement enabled GEPetrol to spur the country’s
hydrocarbon sector and begin shipments of crude oil from those
projects in July this year.
Your Excellency,
Ladies and gentlemen,
Today, there is an ongoing debate about
the phase-down of fossil fuels. The idea behind decarbonisation
is to reduce our carbon footprint. However, it should be noted that
Equatorial Guinea is not among the countries with the highest carbon
dioxide emissions. On the contrary, our emissions have almost no
impact on climate change.
However, meeting the global
decarbonisation targets is a major challenge for the Republic
of Equatorial Guinea. Nevertheless, we are required to switch
to carbon-free sources. Furthermore, Equatorial Guinea does not possess
the same kind of advanced technology supporting decarbonisation that
more developed countries have access to. Therefore, we cannot accept
or support the energy transition that leaves the least developed
countries behind.
It is necessary to acknowledge
and accept the fact that the pace of adaptation to new
market conditions will vary across the globe.
Your Excellency, ladies and gentlemen,
Ensuring a prosperous future
for energy is our shared responsibility, which implies collaborative
efforts – efforts that Equatorial Guinea is calling for – that are
based not just on energy production, but also on a shared
resolve to promote stability in energy markets. This will lead all
of us to a fair technological transition.
Cooperation is impossible unless it seeks
to achieve common goals and is based on mutual benefits. More
than that, it is impossible to talk about cooperation without
a consensus based on considering each other’s interests
and respect for other countries.
I would like to close by wishing
the 7th Russian Energy Week International Forum, just like
all the previous ones, every success. May the outcomes
of the discussions and your proposals lead to a world
free of injustice in the energy sector.
Thank you very much.
Vladimir Putin: Friends, colleagues,
You have a full working week ahead
of you. A week of contacts and meetings during which you
will sit down and discuss the issues that brought you to Moscow.
Without a doubt, your work during the forum and, more broadly, your
current efforts are impacted by the political developments around
the world.
Politics and the economy are closely
intertwined, especially in a critical and fundamental economic
sector such as energy. This link can be traced to the early days
of human history. It is obvious. Now, it has become clear
to the point where even those who are not involved
in the economy or politics are aware of it.
However, we have here the people who are
accustomed to doing concrete things, rather than telling others what they
should be doing and how. We have businesspeople in this audience.
The outcomes of your work will have a significant impact
on both the economy and politics.
I wish you success in this joint
event and hope that your efforts will be as free of politics
and as pragmatic as possible. I wholeheartedly wish you success.
I would like to thank our foreign
guests for coming to our country, Russia’s capital, Moscow,
in these challenging times.
I wish you all the best, every
success, and prosperity. Good luck.
Thank you.
Source: kremlin.ru
