Rosneft: Russia helps Europe in gas crisis, remains key supplier

VERONA, Oct 28 PRIME) -- Russia contributes to solving the gas crisis in Europe as much as it can and remains the key supplier, despite politzation of the situation, Russian oil giant Rosneft CEO Igor Sechin said at an economic forum on Thursday.

“Although we see politization of the energy issues, … Russia contributes as much as possible to resolving the crisis by ensuring stability of gas supplies to Europe. At the same time, our country always meets all of its contractual obligations fully,” Sechin said.

Due to the lack of long-term contracts, the gas storage facilities were only 75% full, and, while long-term deals provide certain stability of the gas market, they do not guarantee full stability, as spot supplies develop under short-term deals. Europe’s hopes for spot liquefied natural gas (LNG) supplies from the U.S. did not materialize, as the U.S. is primarily increasing supplies in other directions.

“The “molecules of freedom” that American gas would bring as the previous U.S. administration widely advertised are not coming to the European continent in sufficient quantities,” Sechin said.

Alternative energy sources with their current limited capacity were also unable to rein in gas price growth amid rising demand.

The gas crisis broke due to a combination of factors that occurred simultaneously, he said.

The current crisis has highlighted the importance of maintaining stable reserves, Sechin said.

As a possible remedy, Sechin advised to turn to the stock exchanges.

“The world’s largest stock exchanges, which are the hubs for most transactions, could also register long-term contracts for energy supplies, thereby contributing to balancing the markets or at least providing objective information,” Sechin said.

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