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Igor Sechin called the domestic energy potential the saving Ark in the global crisis


According to him, the sanctions destroy the institution of contractual obligations, the judicial and legal system, the financial and industrial sectors. In addition, the unprecedented measures taken by the United States in relation to Russia contradict the basic foundations of the legal system of any modern constitutional democracy.

“In the understanding of the United States, sanctions are a kind of magic wand for the implementation of political and economic goals,” Igor Sechin noted. “When market mechanisms do not ensure the achievement of goals, and there are no political opportunities, the United States resorts to sanctions without any reason.”

As an example, the head of Rosneft cited the situation around Iranian oil. In April of this year, at the suggestion of the American administration, Greece detained a Russian tanker, accusing the ship of transporting Iranian oil. And although the ship did not violate any laws, the Greek court ruled in favor of the United States, supporting the confiscation and shipment of oil to the States. Later, however, he had to cancel this decision. According to Igor Sechin, this situation once again confirms the “arbitrariness of sanctions” by the US and the EU to bring any person under sanctions without collecting any evidence.

“It can be stated that the concept of the presumption of innocence, introduced in Roman law in the 3rd century, has been destroyed today – everyone against whom sanctions are announced is initially guilty, without any reason, which justifies any illegal actions,” Igor Sechin emphasized.

Now the so-called “order based on the rules” recognizes the only rule – all the rules are set by a single regulator, and change them as he wants in his own interests, – Igor Sechin noted. There are no more “rules”. As a result, we have the destruction of the market, a unipolar world with the “pole” broken off the chain.

The anti-Russian sanctions imposed by the United States primarily hit the economy of the States themselves, being one of the reasons for accelerated inflation and the growing crisis in the country. Anti-Russian sanctions have an even more devastating effect on the economies of European countries.

According to Igor Sechin, Europe, having adopted the anti-Russian sanctions imposed on it, faced social degradation, as a result, it finally lost its subjectivity and chances to become not only a political, but also a competitive economic pole, alternative to the United States.

By turning away from Russian oil and gas, Europe has become the region with the highest cost of energy in the world, Sechin added.

“The energy suicide committed by Europe will have long-term consequences,” Igor Sechin is sure. “We are already seeing a decrease in its economic potential, a loss of competitiveness and direct losses for investors.”

Thus, in France, the CAC 40 stock index fell by 18 percent, in Germany, the DAX index fell by 19 percent, in Italy – by 22 percent. In total, investors in the three European countries have already lost about $1.6 trillion.

Overall, JP Morgan estimates that rising energy prices in 2022 alone could cost the Eurozone an additional €550 billion, equivalent to 4.5 percent of GDP.

“More and more Germans believe that the previous level of consumption has become beyond their means. German Economy Minister Robert Habeck has already acknowledged that the country will have to face a “new poverty,” said the head of Rosneft.

The rejection of Russian energy carriers has a negative impact not only on European countries, but also creates a crisis in Asia. In order to replace Russian gas, Europe has to buy LNG destined for developing countries. Thus, from October 2021 to June 2022, as a result of the cancellation of LNG supplies to Pakistan amid rising demand and prices in Europe, a powerful energy crisis began in the country: daily power outages in May-June reached 12 hours in cities and 16 hours in rural areas. terrain.

For the poorest countries in Asia, Africa and Latin America, which do not have their own resources, anti-Russian sanctions can result in famine and economic collapse, predicts Igor Sechin. The leaders of developing countries are well aware of this. Subrahmanyam Jaishankar, the Minister of Foreign Affairs of India, formulated his attitude to such a policy in the mildest form: “The West is mistaken if it considers that the rest of the world should solve their problems, while refusing to solve the problems that other countries of the world face.”

Anti-Russian sanctions not only destroy the economies of dozens of countries, but also neutralize global efforts to decarbonize. The rejection of Russian energy carriers increases the global demand for cheap substitutes and increases the share of coal in the energy balance, Igor Sechin notes. According to his estimates, coal-fired generation in Europe in 2022 can grow by more than a third, despite the fact that in 2021 it has already grown by 18 percent.

“There is a real” coal renaissance “, which in many ways undermines global efforts to reduce the carbon footprint,” Sechin added.

According to the head of Rosneft, anti-Russian sanctions, in fact, ended the “green transition”. The residual “green rhetoric” completely contradicts the real practice aimed at finding any sources of hydrocarbons at any cost, instead of Russian ones. In fact, the “green transition” is no longer needed as a way to manipulate the market with the availability of other, more rude and radical approaches, in fact robbery.

According to Igor Sechin, changes are also taking place in the global financial system, in particular, new world reserve currencies are being created.

“The disproportionately high share of the dollar in central bank reserves, which is about 60 percent, is almost three times the share of the United States in the global economy, which is a clear signal for the need for change,” Sechin said.

“The value of the euro as a world reserve currency is declining – the rejection of Russian energy resources and the decrease in the competitiveness of the EU economy have already led to a fall in the euro against the dollar by 8 percent. Thus, by banning trade relations with Russia, Europe has limited the circulation of its currency and reduced its attractiveness for international settlements,” Igor Sechin noted.

In this regard, he urged to boldly and quickly follow the path of increasing the share of settlements in national currencies, increasing the volume of mutual trade and commodity deliveries, intensifying contacts between national banks and strengthening the integration of national payment systems of various countries.

According to Igor Sechin, the joint efforts of Russia and its partners should not be limited to the financial sector alone. Mutual investments can become another area strengthening cooperation. This measure will also help reduce dependence on the dollar and the euro.

“Under these conditions, it is impossible to overestimate the role of Russia in the formation of a new configuration of markets and new institutions for the interaction of countries striving for independence from diktat and sanctions arbitrariness,” the head of Rosneft emphasized.

“We are already seeing a movement towards a new configuration of the oil market, where two price contours are being formed: for friendly countries – a fair market price, and for unfriendly countries – a premium is added to the price, which will be used to pay off our costs associated with the violation of rules and obligations by our former partners,” said Igor Sechin.

“Russia, with its energy potential and portfolio of first-class projects, such as Vostok Oil, can meet the world’s long-term needs for affordable energy resources and, of course, is the saving Ark,” Igor Sechin said.

Igor Sechin demonstrated to the participants of the Energy Panel oil from the Vostok Oil project, which is characterized by unique premium qualities – extremely low sulfur content from 0.01 percent to 0.1 percent and low density.

Foreign partners, including the Chairman of the Board of Directors of CNPC, the CEO of ONGC, the CEO of a Philippine trading company, supported the main ideas of Igor Sechin’s report and expressed their intention to cooperate.

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