Russia supplies the European Union with about 40 percent of its natural gas needs, and Western sanctions over what Moscow calls its “special military operation” in Ukraine have hurt its energy exports by complicating financing and logistics related to existing deals.
As the European Union debates whether to impose sanctions on Russian oil and gas, and member states seek supplies from elsewhere, the Kremlin is forging closer ties with China, the world’s largest energy consumer, and other Asian nations.
Putin said in a government meeting broadcast on television: “The so-called partners from unfriendly countries admit themselves that they will not be able to live without Russian energy resources, including natural gas, for example.”
He added, “There is no logical alternative (to Russian gas) in Europe now.”
Putin also said that Europe’s talk of clamping down on Russian energy supplies does nothing but raise prices and destabilize the market.
He said Russia, which produces about a tenth of the world’s oil and about a fifth of gas, would need new infrastructure to boost energy supplies to Asia.
He ordered the government to submit a plan by June 1 that includes “the expansion of transport infrastructure to countries in Africa, Latin America, and Asia and the Pacific.”
It also sought to clarify the possibility of including the pipelines – Power of Siberia to China and Sakhalin – Khabarovsk – Vladivostok in the Far East in the unified Russian gas supply system.
Connecting these two lines to Russia’s broader network could theoretically allow gas flows to be diverted from Europe to Asia and back.
Putin also said the role of national currencies in export deals should rise, amid Russia’s plans to switch to the ruble in payments for gas supplies, especially to Europe.
Russia has seen a sharp decline in oil production, its main source of revenue, amid difficulties with trade and ship payments.
Sources said that major international trade companies plan to reduce purchases of crude oil and fuel from Russian state-controlled oil companies by May 15, to avoid falling into the trap of European Union sanctions imposed on Russia.
Putin said the sector’s most acute problems are related to logistical disruptions to energy supplies.
#Putin #Europe #Russian #gas #turn #east