According to the Global Network, in recent days, Russian President Vladimir Putin said that Russia will work hard to shift its energy exports to the East, adding that European countries have no way to immediately give up Russian natural gas.
Putin is full of confidence
As we all know, Europe has long been dependent on Russian energy. Before the outbreak of the Russian-Ukrainian conflict, Russia's natural gas supply to Europe reached 40%. However, after the situation got out of control, Europe followed the pace of the United States and took sanctions against Russia to reduce its dependence on Russia's energy. It is reported that while the European Union is discussing whether to impose sanctions on Russian energy and member states are seeking imports from elsewhere, Putin has turned his attention to China and other Asian countries.
Putin said that countries that are not friendly to Russia will not be able to survive after losing Russian energy. Now Europe has not found a partner that can replace Russia. Putin also mentioned that Europe's suspension of Russian energy supply has led to soaring energy prices and turbulent markets. Russia accounts for one-tenth of global oil production and one-fifth of global natural gas production, and Russia will build new infrastructure to increase exports to Asian markets.
Putin has ordered the government to submit plans by June, including expanding transport infrastructure to countries in the Asia-Pacific region and Africa. In addition, Putin also plans to open two pipelines, one is the Siberian power gas pipeline to China, and the other is the Sakhalin-Khabarovsk-Vladivostok gas pipeline. Once these routes are connected to the gas network, it is possible to transfer Russian gas from Europe to Asia.
Since Europe halted imports of Russian energy, domestic energy prices have continued to rise, placing a burden on the living expenses of the general public. Already devastated by the pandemic and sluggish economic development, Europeans could no longer bear the increase in energy prices and launched demonstrations.
The United States has tried to help Europe cope with the energy crisis and let American gas companies increase energy supplies to the European market, but it has not helped. Previously, Russia has reminded Europe that the United States is trying to occupy the European energy market, but the United States cannot replace Russia's energy supply to the European market.
OPEC warned Europe
OPEC Secretary-General Barkin warned in talks with EU representatives that sanctions against Russia could trigger the worst oil supply deficit in history and would not be fully compensated. Barkin said the restrictions would lead to a 7 million barrel-per-day cut in Russian oil and other fuel exports. The volatility of the market is caused by unnecessary factors that are completely out of OPEC's control. Barkin called on Europe to encourage a realistic approach to the energy transition.
In the face of European energy sanctions against Russia, Putin launched a countermeasure, requiring European countries to use rubles as a settlement tool if they want to import Russian energy. After hearing this demand, European countries said they could not accept it and criticized Putin for violating the cooperation treaty. But Russia is adamant, saying it will not supply Europe with energy for free. This is the only and best way for Europe to buy rubles from Russian banks and then import energy in rubles.
Recognizing the seriousness of the problem, European countries could only accept all the orders and began to purchase rubles from the Russian central bank. Knowing now, why did he follow the United States in the first place, not only did not achieve his goal, but folded himself into it. However, this is a good thing for Russia, once Europe adopts the ruble to introduce energy, it will help ease the Russian economic crisis.