Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Putin tells Europe: You still need Russian gas but we're turning east

Economy Apr 14, 2022 11:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Russian President Vladimir Putin visits the construction site of the Amur launch complex for Angara rockets at the Vostochny Cosmodrome in Amur Region, Russia April 12, 2022. Sputnik/Mikhail Klimentyev/Kremlin via REUTERS/File Photo
 
NG
-0.47%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

(Reuters) -President Vladimir Putin said on Thursday that Moscow would work to redirect its energy exports eastward as Europe tries to reduce its reliance on them, adding that European nations would not be able to ditch Russian gas immediately.

Russia supplies around 40% of the EU's natural gas, and western sanctions over what Moscow calls its "special military operation" in Ukraine have hit its energy exports by complicating the financing and logistics of existing deals.

While the EU debates whether to slap sanctions on Russian gas and oil and member states seek supplies from elsewhere, the Kremlin has been forging closer ties with China, the world's top energy consumer, and other Asian countries.

"The so-called partners from unfriendly countries concede themselves that they won't be able to make do without Russian energy resources, including without natural gas, for example," Putin told a televised government meeting.

"There is no rational replacement (for Russian gas) in Europe now."

Putin also said that Europe, by talking about cutting off energy supplies from Russia, was driving up prices and destabilising the market.

He said Russia, which accounts for around a tenth of global oil production and around a fifth of gas, would need new infrastructure to boost energy supplies to Asia.

He ordered the government to present a plan by June 1 including on "expanding transport infrastructure to countries of Africa, Latin America (and the) Asia Pacific."

He also sought clarity on the possibility of including two pipelines - China-bound Power of Siberia and the far-eastern Sakhalin-Khabarovsk-Vladivostok in Russian unified system of gas supplies.

Plugging those routes into the wider network may allow Russia, in theory, to switch gas flows from Europe to Asia and visa versa.

Russia launched pipeline gas supplies to China in the end of 2019 and in February agreed a 30-year contract via a new pipeline, yet to be built, with plans to settle sales in euros.

Putin also said that the role of national currencies in exporting deals should rise, amid Russia's plans to switch to roubles in payments for its gas supplies, mainly to Europe.

Russia has seen a steep decline in production of oil, its key source of revenues, amid difficulties with payments for trading and vessels.

Major global trading houses are planning to reduce crude and fuel purchases from Russia's state-controlled oil companies as early as May 15, sources said, to avoid falling foul of EU sanctions on Russia.

Putin said the sector's most acute problems were related to the disruption of energy supply logistics.

Putin tells Europe: You still need Russian gas but we're turning east
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
First Last
First Last Apr 14, 2022 11:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"but we're turning east" --  Ukraine is southwest of Russia
jason xx
jason xx Apr 14, 2022 11:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Someone needs to take this bu ms head off
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email