Russia’s energy system has
maintained its stability in spite of sanctions imposed on the country and the
move away from Russian energy by European states. The next stage will be to
expand energy supplies to Asian nations and attain complete sovereignty in the
sector, said President of Russia Vladimir Putin at the plenary session of
Russian Energy Week (REW).
KEY CONCLUSIONS
Russia has successfully set up its energy system
following the imposition of sanctions
“As you may be aware, European
countries have effectively turned down our energy. Not yet entirely, but they
have been trying to. For many years, these resources have played a significant
role in ensuring the economic and social prosperity of the European Union.
Perhaps, not entirely, but our energy accounted for much of their well-being.
Recent restrictive measures have been imposed on banking services, freight and
insurance, and price caps have been established on our oil and gas. <...>
They [EU countries – ed.] are now paying more for oil, refined products
and natural gas. As a result, the EU’s economy is hovering near the zero-growth
mark, and industrial production has been in the negative since March.
<...> Industrial output dynamics in the EU for July showed a decline of
2.4%. Energy output dropped by 4.7%, and for the first half of this year there
was a 5% drop. These developments have impacted household incomes. <...>
Notably, the Russian fuel and energy complex is operating steadily. Production
and financial indicators are strong. Thanks to corporate and public efforts,
the tanker fleet has expanded, and new payment, insurance and reinsurance
mechanisms for our cargo have been put in place,” Vladimir Putin, President of
the Russian Federation.
“[Following the remarks made
by President of the Russian Federation Vladimir Putin – ed.] I thought
that the impact of Western sanctions on Russia is not as bad as it may seem.
This situation has allowed your country to adapt to these negative effects,
overcome them, and most importantly, find alternative energy markets. Most
importantly, I believe, these effects have made it possible for the countries
that are interested in cooperating with Russia to reach out independently and
free from external dictate,” Amro Abdelhamid, Presenter, Al Ghad pan-Arab
television network.
“I listened to what the
President [Vladimir Putin – ed.] had to say, and I would like to
emphasize that he is a wise leader and responds very accurately to the emerging
challenges which are leading to new opportunities for development,” Muhammed
Shia Al-Sudani, Prime Minister of Iraq.
PROBLEMS
Threats to the
global energy system resulting from the actions of certain countries
“We fulfil all our
obligations, inside the country and to our partners who wish to work with us.
Those who have imposed these restrictions are facing difficulties they cannot
overcome so far. So, they no longer buy our natural gas. As a result, prices have
skyrocketed. <...> The Nord Stream pipelines were blown up, but nobody
investigates the incident. I am surprised about the position of many European
countries. It was obviously an act of international terrorism and, from all
appearances, committed at a state level. That’s because no random group of
people who somehow decided to blow up gas pipelines would have been able to
commit such an act without state support,” Vladimir Putin, President of the
Russian Federation.
“Discontent is growing on the
Arab street – there will be increasing pressure on Arab governments to take a
clear stand [on the clash between Palestinian groups and Israeli troops in the
Gaza Strip – ed.]. The spread of the crisis and conflict throughout the
region is definitely a destabilizing factor. <...> There is a risk that
energy supplies will be stopped. The region that supplies resources to energy
markets is very sensitive and very important,” Muhammed Shia Al-Sudani, Prime
Minister of Iraq.
SOLUTIONS
Boosting
international cooperation on energy with reliable countries
“We have chosen convergence to
address challenges, and are interested in diversifying energy sources in order
to expand economic cooperation and strengthen security. <...> We are
striving for economic integration to enhance prosperity and cooperation.
Building on that vision, we have adopted an unparalleled project, the
Development Path project, and begun implementing it. The project has a number
of economic objectives which will have a positive impact in the medium and long
term. We confirm our readiness for serious work with the countries of the
region and the world to implement the project within the framework of our
philosophy on attracting investors and capital in order to turn our region into
a platform for converging interests. <...> And we thank the leadership of
the Russian Federation for the invitation to take part in this forum. We view
it as a major opportunity for opening new doors of possibilities, for
developing cooperation,” Muhammed Shia Al-Sudani, Prime Minister of Iraq.
“Some actions by our
colleagues, particularly the Western elite, have, of course, wreaked havoc on
the global energy market, including the oil market. The negative consequences
of such politicized moves affect the entire global economy. Now, we have to
redress the balance, and it falls upon responsible market participants to do
so. To ensure stability in the oil market, major suppliers must act in concert
on open and transparent terms. This is how Russia is working with its partners
within OPEC+. We primarily rely on the objective market-driven dynamics of oil
supply and demand, and the industry’s investment programmes. This is why the
OPEC+ countries fully act on their commitments and are effectively addressing
all challenges,” Vladimir Putin, President of the Russian Federation.
Shifting the focus
of energy supplies to Asian markets
According to experts, natural
gas demand will soar in all regions, except North America and Europe, until
2050. The share of Europe in global demand will more than halve to 5%.
Incidentally, the share of Asia will increase by 50%, from 21% to 30%. Russia
continues to export more gas to the People’s Republic of China. In 2025, the
Power of Siberia gas pipeline will reach its design capacity of 38 billion
cubic metres of gas annually. However, it already transports substantial gas
volumes exceeding contract obligations,” Vladimir Putin, President of the
Russian Federation.
Attaining
sovereignty in the energy sector
“Russian fuel and energy
projects are increasingly based on domestic technology, equipment, machinery
and software. <...> This is about achieving complete sovereignty within
the industry, including technological, personnel and financial sovereignty. We
will need to drastically increase the volume and share of Russian-made
equipment, especially critical equipment, to raise the training of qualified
personnel to a new level and, of course, to form our own mechanisms for
financing investment projects. Notably, we are continuously working to create
and introduce domestic machinery and equipment for the oil and gas sector and
power transmission. Since 2014, we have been successfully producing over 140
types of equipment, including drilling and hydrocarbon production equipment,
heat-transfer equipment, catalysts and agents, high-voltage cables and
switches, and much more,” Vladimir Putin, President of the Russian Federation.
For more information, visit
the Roscongress Foundation’s Information and Analytical System at roscongress.org/en.
The Russian Energy Week
International Forum is a key global platform for discussing current trends in
the development of the modern fuel and energy sector. This event is
traditionally held at the highest level, featuring the participation of leaders
from the largest companies in the energy industry. In 2022, more than 70
events, with the involvement of over 270 speakers, were held as part of REW.
The Forum attracted over 3,000 participants and media representatives from
Russia, as well as 83 foreign countries and territories. The Forum is organized
by the Roscongress Foundation and the Ministry of Energy of the Russian
Federation, with the support of the Moscow City Government.
Official website of REW: rusenergyweek.com. For news about the event and the industry, please
follow the official REW page on VK.
