Putin: EU energy policy is economic suicide
Russian President Vladimir Putin Russia’s drive to phase out fossil fuels has fueled energy inflation in the West.
Russian President Vladimir Putin said on May 17 that energy inflation in countries The West should be blamed for their own mistakes, not Russia’s. The EU is killing itself economically by trying to cut off Russia’s energy sources, Putin said.
“Economic suicide This, of course, is an internal affair of European countries. We must act in a pragmatic manner, proceeding primarily from our economic interests,” Putin said at a conference on the oil sector.
According to Putin, Europe admits that it is not possible to completely abandon Russia’s energy sources. However, Europe has set such a mandate, “without regard for the damage done to its own economy”.
Sanctions and the declaration of a waiver of Russian energy have contributed to the increase oil prices around the world,” Putin emphasized.
“Today we see that for political reasons, for their own ambitions and under pressure from the US, European countries are imposing more and more new sanctions on the oil and gas market. All this leads to inflation, and instead of admitting their mistakes, they are looking to place the blame elsewhere,” Putin said.
“They’re trying to blame us for this energy inflation, they’re blaming everything on Russia, trying to cover up, as I said, their own systemic mistakes in this area.” – The Russian President added.
In the context of the energy crisis, gas price in Europe is forecast to triple. Norway-based energy research firm Rystad Energy says gas prices on the Old Continent could reach $3,500 per 1,000 cubic meters next winter.
A “perfect winter storm” could be forming in Europe, according to analysts at Rystad Energy, as the continent seeks to limit Russian gas flows. They added that there may not be enough LNG to replace Russian gas in icy weather.
According to the report, Russia delivered 155 billion cubic meters of gas to Europe last year, accounting for 31% of the continent’s gas supply.
“Replacing a significant portion of this will be extremely difficult, with far-reaching consequences for Europe’s population, economy and the role of gas in the region’s energy transition. ” – according to Rystad Energy.
By abandoning Russian gas, Europe has destabilized the entire global liquefied natural gas (LNG) market, which has already started the year with a precarious balance after a full 2021, Rystad Energy explains. fluctuations. The decision to drastically reduce dependence on Russian gas and LNG from the current level of 30-40% will change the global LNG market.
The report highlights that global LNG demand is expected to reach 436 million tonnes by 2022, outstripping existing supply of just 410 million tonnes. “Supply imbalances and high prices will create a bullish environment for LNG projects for more than a decade, although supply from these projects will only come after 2024.”
According to the study, if Russian gas flows were to stop tomorrow, the gas currently in storage (about 35% full) could “run out before the end of the year, causing Europe to experience another winter”. dire”. Under such a scenario, in the absence of joint purchase agreements, the price of TTF gas could rise to more than $100/1 million MMBtu, leading to industrial cuts and widespread fuel conversion in the power sector. In an extreme scenario of a severe cold winter, not even the population is safe.
Natural gas prices rose last week after Russia imposed the first retaliatory sanctions against several European energy companies. According to data provided by London’s ICE, gas prices in Europe exceeded $1,200 per 1,000 cubic meters in trading on May 12. According to Reuters, the benchmark is nearly 300% higher than it was a year ago.
at Blogtuan.info – Source: laodong.vn – Read the original article here