Igor Sechin: Energy Security Is No Longer Global

"The actions of the world hegemon trying to maintain its hegemony by any means, have destroyed the unified energy market", said the head of Rosneft, speaking at the ministerial session at the Indian Energy Week, a key South Asian forum dedicated to energy security and environmental sustainability.

He stressed that today there is no unified global energy market, and energy security is no longer global.

The India Energy Week 2023 is held under the patronage of the government of India with the participation of all public sector enterprises and with the official support of the Federation of Indian Petroleum Industry.

"As a result of those actions, all the principles of market trading have been destroyed, in fact, market pricing, and contract law have been abolished, and logistics chains built up for decades have been severed.  A visual image is the blown up Nord Stream", said Igor Sechin.

According to Igor Sechin, the most striking example is the reformatting of the European gas market. Contrary to common sense, Europe was forced to abandon long-term contracts and switch to spot pricing. Against the background of the forced green transition, and underinvestment in conventional energy, this has led to an unprecedented price increase. "And when, by means of sanctions and pressure, the Russian competitor was driven out of the European market, the Americans proposed to return to long-term contracts that would guarantee a return on investment. We are talking about ordinary unfair competition," said Igor Sechin.

As a result Europe has completely lost its main advantage - energy security - access to cheap and reliable Russian energy carriers, and is now forced to pay 3-5 times more for gas. According to Bloomberg, abandoning Russian gas has already cost Europe about 1 trillion euro.  Germany recorded a 0.2% drop in GDP in Q4. The IMF predicts a recession in Europe's key economy. This concerns not only energy sector, but all industries.

"We observe the capital flight and transfer of production, primarily to the United States," said the head of Rosneft.

Rosneft
Information Division
February 6, 2023