"Europe direly needs Russian fuel and energy," he said to Novosti in an exclusive interview.
Russia has spectacular benefits, and ought to think hard what to make of them, he pointed out.
If Russia is to make progress with its energy sphere, it needs capital investment in geological prospecting and mineral extraction. It is also a must to give private investors greater elbowroom.
Mr. Mandil sees Russian petroleum price ups and downs as reflecting domestic political and economic developments. "I cannot say for sure what Russian oil will cost in the distant or near future. Anyway, I think the prices will depend on the political and economic situation in the world and within Russia alike," he remarked.
The IEA chief thinks Russian power industry has excellent prospects, especially with government efforts to update it. "I don't think the Russian power industrial reform will finish soon-it takes Europe five years to make similar reforms," said Mr. Mandil.
Our interviewer asked him to what an extent Russia might eventually increase its electricity exports to Europe.
"There are good prospects, true-but transportation has to be settled, to start with," was the reply.
Mr. Mandil confirmed the necessity for Russia and Europe to technically synchronize their power grids.
"Investments are direly necessary for Russian power industry to rise to European standards," he emphasized.
