Russian President Vladimir Putin visits the construction site of the Amur rocket complex “Angara” at the Vostochny spaceport in the Amur region, Russia, April 12, 2022. Satellite / Mikhail Klimentiev / Kremlin via REUTERS / File photo
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- Putin: Europe cannot replace all Russian gas now
- Putin: Russia needs to build new oil and gas pipelines
- He called for further diversification of energy sales outside Europe
April 14 (Reuters) – President Vladimir Putin said on Thursday that Moscow would work to divert energy exports to the east as Europe tries to reduce its dependence on them, adding that European nations will not be able to give up immediately. from Russian gas.
Russia supplies about 40% of the EU’s natural gas, and Western sanctions on what Moscow calls its “special military operation” in Ukraine have affected energy exports, complicating the financing and logistics of existing deals.
As the EU discusses whether to impose sanctions on Russian gas and oil and member states seek supplies elsewhere, the Kremlin is building closer ties with China, the world’s largest energy consumer, and other Asian countries.
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“So-called partners from hostile countries admit that they will not be able to cope without Russian energy resources, including natural gas, for example,” Putin told a government televised meeting.
“There is no rational replacement (of Russian gas) in Europe now.”
Putin also said that Europe, by talking about cutting off energy supplies from Russia, was raising prices and destabilizing the market.
He said Russia, which produces about a tenth of world oil production and about a fifth of gas, will need new infrastructure to increase energy supplies to Asia.
He ordered the government to present a plan by 1 June, including “expanding transport infrastructure to African, Latin American (and) Asia-Pacific countries”.
He also sought clarity on the possibility of including two gas pipelines – China-linked “Power of Siberia” and the Far Eastern Sakhalin-Khabarovsk-Vladivostok – in Russia’s unified gas supply system.
Incorporating these routes into the wider network could allow Russia to theoretically switch gas flows from Europe to Asia and back.
Russia began supplying gas to China via pipelines in late 2019, and in February signed a 30-year contract through a new pipeline yet to be built, with plans to settle sales in euros. Read more
Putin also said that the role of national currencies in export deals should be increased against the background of Russia’s plans to switch to rubles in payments for gas supplies, mainly to Europe.
Russia has seen a sharp drop in oil production, a key source of revenue, amid difficulties with payments for trade and shipping. Read more
The world’s major trading houses plan to cut purchases of crude oil and fuel from Russian-controlled oil companies as early as May 15, sources said, to avoid violating EU sanctions against Russia. Read more
Putin said that the most acute problems in the sector are related to the disruption of logistics of energy supplies.
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Reuters report; edited by Guy Falkonbridge and John Stone Street
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