On Tuesday, Russian President Vladimir Putin said the energy sector was going through a “tectonic shift,” but that Europe was committing “economic suicide” by imposing sanctions on Moscow over Ukraine.
Europe would only hurt itself by attempting to phase out Russian energy supplies, Putin said, pushing state authorities to take advantage of the West’s “ill-thought-out” efforts.
He predicted that Europe’s policies will result in higher energy prices and inflation at a recent energy conference.
“Of course, such economic suicide is a European domestic matter,” Putin remarked.
The West has imposed unprecedented sanctions against Russia after the Kremlin dispatched soldiers to Ukraine on February 24.
When it comes to Russian oil and gas, Western countries have shown tight coordination in their announcements of fines, but have not proceeded at the same pace. Putin stated that the government will assist businesses in changing their business strategies.
The Kremlin head stated that the government will assist in improving logistics and deep hydrocarbon processing, as well as ensuring payments in national currencies.
As European countries seek ways to wean themselves off Russian energy, Putin hopes to reroute supplies to “friendly” countries.
Putin claimed that Europe’s “chaotic acts” are not only harming its own economy, but are also increasing Russia’s oil and gas income.
“Oil market changes are tectonic in character, and operating business as usual, according to the old paradigm, is improbable,” he said.
“In the new environment, it is critical to not only extract oil, but also to construct the full vertical chain leading to the final customer,” he continued.
