‘No person will freeze’: Russia will provide Europe with as a lot fuel because it wants, says nation’s vitality committee

Europe will get as a lot fuel from Russia because it must curb vitality shortages, whereas fuel costs will inevitably stabilize, the nation’s Nationwide Power Committee head Aleksey Gospodarev advised RT on the Russian Power Week discussion board.

“There will probably be as a lot fuel as wanted. As [Russian President Vladimir Putin] confused as soon as once more, we’ve got by no means denied fuel to anybody,” Gospodarev stated, noting the paradox that many concern Russia might use fuel as leverage in opposition to its opponents though “it has by no means occurred in historical past.”

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“Because the president assured, no person will freeze. As a lot fuel will probably be equipped as wanted,” the official added.

Gospodarev predicts fuel costs will stabilize, noting that each one specialists assume likewise. Nonetheless, in keeping with him, the soundness lies in long-term contracts, whereas market buying and selling within the vitality sphere is very unstable.

“Europe intentionally moved in the direction of market pricing within the fuel sphere, towards the so-called spot market. Right here is the end result, since there are a whole lot of unknowns within the formation of this pricing… a mixture of things which might be troublesome to foretell led to this bounce,” he stated, referring to the current surge in fuel costs in Europe.

“Europe desires to kind a spot market – the invisible hand of the market should align and decide costs, however as President [Putin] stated, that is fuel we’re speaking about. This can be a extra complicated product that’s the basis for the whole economic system,” the official stated.

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November fuel futures on the TTF hub within the Netherlands traded round $ 1,200 per thousand cubic meters on Thursday, after reaching an all-time excessive of $ 1,937 final week. In keeping with Gospodarev, the transfer in the direction of market pricing within the fuel trade is unnecessarily troublesome, as there could also be a whole lot of speculative actions.

“It’s believed that the worth bounce was spurred on by speculative actions. No economic system will profit from this,” the official acknowledged, stressing that “one doesn’t should be depending on volatility within the vitality market.”

Lengthy-term contracts are one other matter, he stated, noting that these offers now put a cap on costs at which nations purchase Russian fuel. These figures differ considerably from the current record-breaking costs available on the market, he confused.

“If you happen to can forecast costs for main vitality merchandise in the long run – that are the premise for the formation of the nation’s GDP – that’s when it is possible for you to to form your funding coverage and never rely on worth swings,” the official emphasised.

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