Putin said Europe cannot give up Russian gas, but Russia seeks more Asian markets

Russian President Vladimir Putin chairs an online meeting on oil and gas with representatives of energy companies and Russian officials at his home on April 14 – Photo: REUTERS

He is confident Europe cannot completely stop buying gas of Russia immediately.

Russia accounts for about 10% of global oil production. According to Reuters news agency, the country has been establishing closer ties with Asia and China, the world’s top energy consumer, to diversify away from the traditional market in Europe.

“It is surprising that partners from unfriendly countries admit that they would not be able to function without energy sources, including gas from Russia,” Putin said during a government video conference. Russia. There is no reasonable substitute (for gas) in Europe today.”

Putin said that Europe’s talk of cutting energy supplies from Russia has raised prices and destabilized the market.

Western sanctions on Russia’s military activity in Ukraine have affected Russia’s energy exports. Meanwhile, Russia’s special military operation in Ukraine is a test of the energy priorities of the 27 countries of the European Union (EU).

The EU no longer wants to be dependent on Russia, which supplies about 40% of the bloc’s natural gas, but this reality is unlikely to change anytime soon.

To expand fuel supply to Eastern countries, Putin said that Russia will need to build infrastructure to increase energy supply to Asia.

Previously, at the end of 2019, after years of intense negotiations and agreed to cut fuel prices, Russia started supplying gas to China.

Mr. Putin also said that the role of the national currency in export agreements would increase. Russia plans to require payment in rubles for gas sales, mainly to Europe.

According to Reuters, Russia suffered a severe decline in oil production, the country’s main source of income.

Sources say major global traders plan to reduce purchases of crude and fuel from Russia’s state-controlled oil companies to avoid violating sanctions against Russia.