Oil issues to Europe and challenges to Russia / News / News agency Inforos

News of the hour: Outgoing US administration working on new $725-mln military aid package for Kiev

Current events

Ukrainian crisis

Middle East trap

Ukrine WaterShed

United States elections

Russia under sanctions

TOP Reading

TOP discussions

TOP sympathy

Rate it

/ Ukraine / Politics / Energy dialogue / Oil&Gas

Oil issues to Europe and challenges to Russia

President Putin has held meetings on Russia’s oil industry problems

20.05.2022 16:10 Alexander Pasechnik, head of the Analytical Department at the National Energy Security Fund

Context:

Trump brews revolution in American energy industry

On May 17, Russian President Vladimir Putin held a videoconference meeting on developing the oil industry. His speech focused on persistent sanctions pressure from Western countries on the Russian fuel and energy complex, which actually leads to economic suicide of the states enforcing restrictions, without really damaging Russia.

"Today, we see that for purely political reasons, driven by their own ambitions, and under pressure from their US overlord, the European countries are imposing more sanctions on the oil and gas markets which will lead to more inflation. Instead of admitting their mistakes, they are looking for a guilty party elsewhere. One gets the impression that Western politicians and economists simply forget basic economic laws or just choose to ignore them," Putin said.

The Russian President explained that the result of the anti-Russian sanctions already adopted by European countries and their permanent “declarations on refusing to use any Russian energy in the future have sent spot market oil prices higher”. Which is certainly projected onto the European market’s oil product segment – the price of diesel fuel is growing at an even higher rate than oil. And European officials are seeking to blame Russia for energy inflation to justify themselves in the face of millions of ordinary consumers.

Vladimir Putin noted that in the long term, waiving Russian energy will make Europe "the world’s most costly region for energy resources." And such a process is going to accelerate, judging by the European hawks’ anti-Russian rhetoric and mindset to boycott Russian energy carriers. As a result, "some analysts are saying that it will seriously or even irrevocably undermine the competitiveness of a significant portion of European industry, which is already losing ground to companies from other parts of the world." The President of the Russian Federation deduces that along with Russia’s energy resources, the opportunities for economic activity, with its improvements, will leave Europe for other regions: "This economic auto-da-fe… suicide is, of course, the internal affair of the European countries. But in the meantime, we need to act pragmatically, proceeding primarily from our own economic interests."

The erratic conduct by European politicians has resulted in a de facto revenue growth in the Russian oil and gas sector. Yet Putin urged heads of the country's oil companies to walk the line and focus on adapting strategies to the new realities. "The changes in the oil market are tectonic and, of course, business is unlikely to follow old patterns. Under these new conditions, it is important not only to produce oil but also to build an entire vertical chain, all the way to the end consumer," the head of state explained.

Vladimir Putin also reminded the audience how the West’s so-called political class started gambling on many people’s natural climate change concerns: "It is perfectly obvious that, for internal political reasons, the so-called political class in the West started overrating the potentialities of alternative energy and underrating the importance of all traditional energy sources, including hydrocarbons. This continuous abuse was of quite specific nature."

The Russian President has assured that the authorities will make loans and insurance services more affordable for oil companies, and encourage projects on the advanced processing of raw materials and upgrading domestic oil services technology, including the development of deposits and extraction.

At the end of his speech, Vladimir Putin called on the Cabinet and the industry to keep ahead of the game, turning "the thoughtless chaotic steps of some of our partners to our advantage for the benefit of our country."

For obvious reasons, discussions on specific additional measures to protect the national oil industry and promote its interests in the world stage were held behind closed doors.

It is generally clear that the European Union is losing its role as Russia's strategic energy partner. Russian oil and gas exporters will seek to expand and enhance logistics capabilities to reassign the supply of fossil fuel mainly to the Asia-Pacific region (APR). Another national fuel and energy sector priority is to ensure transactions in national currencies.

Add comment

First name *

E-mail *

Comment*

Captcha *

→

▼	USD	29/11	97.9241
▼	EUR	29/11	104.8872

More on the topic «Energy dialogue»:

Top 10 news

Day after day

Partners

Сообщите об орфографической ошибке

More on the topic «Energy dialogue»:

Top 10 news

Social

Day after day

Partners

Сообщите об орфографической ошибке