Rosneft CEO Says Single Energy Market No Longer Exists in World, There Are No Rules
07:30 GMT 27.10.2022 (Updated: 13:53 GMT 19.12.2022)
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BAKU (Sputnik) - The implementation of a price cap on hydrocarbons encroaches on the fundamentals of the market and sovereignty, introduces the principle of "right" and "wrong" countries, Rosneft CEO Igor Sechin said on Thursday.
"In fact, capping [of prices for hydrocarbons] is an attack not only on the foundations of the market but also on the foundations of sovereignty. The idea, in fact, is to abolish the sovereign rights of countries to their own resources, because the 'right' countries, which lack resources, need them more than the 'wrong' ones. The United States itself, of course, is not affected by any restrictions," Sechin told the Verona Eurasian Economic Forum in Baku.
The implementation of a price cap on hydrocarbons encroaches on the fundamentals of the market and sovereignty, introduces the principle of "right" and "wrong" countries, Rosneft CEO added.
"In fact, capping [of prices for hydrocarbons] is an attack not only on the foundations of the market but also on the foundations of sovereignty. The idea, in fact, is to abolish the sovereign rights of countries to their own resources, because the 'right' countries, which lack resources, need them more than the 'wrong' ones. The United States itself, of course, is not affected by any restrictions," Sechin added.
There is no longer a single energy market and uniform rules in the world, Sechin said.
"There is no single energy market anymore. There are no rules," Sechin stressed.
The high volatility that has been observed over the past decade has now become limitless, the company head added.
"There is no single energy market anymore. There are no rules," Sechin stressed.
The high volatility that has been observed over the past decade has now become limitless, the company head added.
"As of now, the technologies needed to implement a truly efficient transition from conventional to low-carbon energy simply do not exist in Europe," Sechin said.
Earlier in October, EU foreign policy chief Josep Borrell said that the European Union's prosperity used to be based on cheap energy from Russia and Chinese markets, which provided the bloc with opportunities for technology transfers, investment and cheap goods, but now the EU needs to look for energy sources inside Europe and restructure its economy.
The start of hostilities in Ukraine in February exacerbated the energy crisis that has been unfolding in Europe over the past year. Disruptions in logistical and financial operations due to the crisis and Western sanctions against Russia have undermined supply chains and led to a spike in energy prices worldwide.
The start of hostilities in Ukraine in February exacerbated the energy crisis that has been unfolding in Europe over the past year. Disruptions in logistical and financial operations due to the crisis and Western sanctions against Russia have undermined supply chains and led to a spike in energy prices worldwide.
G7 finance ministers agreed last month to enforce price limits on Russian gas and oil in the hope of starving the country's hydrocarbon export-reliant economy of cash. The European Union that tankers of third countries carrying Russian oil purchased at above a pre-set price would be denied technical and financial assistance as part of its new sanctions package.