Sign up now for FREE unlimited access to Reuters.com Register President Vladimir Putin said on Thursday that Moscow would work to redirect its energy to the east as European countries try to reduce their dependence on Russian exports, adding that Europe will not be able to completely avoid Russian gas immediately. . Russia, which accounts for about 10 percent of world oil production, has forged closer ties with Asia and China, the world’s leading energy consumer, in a bid to diversify deliveries from its traditional European supply markets. Western sanctions on Moscow’s military operation in Ukraine have hurt Russian energy exports by complicating funding for the deals and logistics. Sign up now for FREE unlimited access to Reuters.com Register “What is surprising is that so-called partners from unfriendly countries admit that they will not be able to cope without Russian energy resources, including gas, for example,” Putin told a televised government meeting. “There is no logical replacement (for gas) in Europe right now.” He also said that Europe, talking about a cut in energy supplies from Russia, was raising prices and destabilizing the market. “Non-friendly countries admit they can not do without Russian energy resources,” Putin said. Russia’s “special military operation” in Ukraine has prompted a review of the 27-nation EU’s energy priorities, as Brussels seeks to rid Russia of its dependent nations, which supply about 40 percent of the bloc’s natural gas. Putin said Russia would need to build infrastructure to boost its energy supply in Asia. Russia began supplying gas to China with pipelines in late 2019 after years of painstaking talks and agreed to cut fuel prices. Putin also said that the role of national currencies in export deals should be increased, in the midst of Russia’s plans to switch to rubles in payments for its gas supplies, mainly to Europe. Russia has seen a sharp drop in oil production, its main source of revenue, amid difficulties paying for trade and ships. read more Major global traders plan to cut crude and fuel purchases from state-controlled Russian oil companies as early as May 15, sources said, to avoid European Union sanctions on Russia. read more Putin said that the most “acute” problems in the Russian energy sector are related to the interruption of supply energy. Sign up now for FREE unlimited access to Reuters.com Register Report by Reuters. curated by Guy Faulconbridge Our role models: The Thomson Reuters Trust Principles.
