What is threat to Russia's energy security?

What is threat to Russia's energy security?

Russia's Energy Ministry has prepared a draft energy security doctrine of Russia, where it names the US policy and green energy as major threats, Vedomosti business daily reported with a reference to the document.

On March 2, the draft was submitted for approval of state bodies.

"The first in the list of external political threats is ‘the US and its allies’ discriminatory policy’ of introducing restrictions on access of oil and gas companies to modern technologies and equipment, restrictions on long-term borrowing, and setting up joint ventures with foreign companies," the daily said.

The document provides the example of a recent withdrawal of Exxon Mobil from joint projects with Russia’s Rosneft on the Arctic shelf due to the US sanctions.

Another major threat to the country’s energy security is the abandonment of fossil fuels and a switch to green energy, which means slower growth of energy consumption and changes in the structure of world’s demand in line with improvement of energy efficiency.

Other threats include tougher of competition, emergence of new energy exporters, a higher production of liquefied natural gas, a worsening resource base, contraction of the size and quality of fields, and a low degree of geological exploration, Vedomosti reported.

The ministry also listed a high level of financial burden energy companies and a slow upgrade of infrastructure among the economic threats, as well as a critical technological and scientific lag. All the reasons deprive Russian companies of competitiveness, Prime reported citing the business daily.

A senior analyst of 'Uralsib Capital', Alexei Kokin, speaking to Vestnik Kavkaza, noted that the gas industry is the most affected by the anti-Russian policy of the West in the energy sector. "The Russian oil industry is already quite dependent on cooperation with Western companies. The gas industry is another matter, since gas exports require cooperation with the EU, and there is still dependence on contacts with the West here. Therefore, the problem is that the issue of pipeline gas exports is often purely political. In this regard, Russia's ability to export pipeline gas is limited by the political positions of certain EU countries," he stressed.

The presence of a switch to green energy in the list of threats Alexei Kokin explained by the possibility of replacing oil and gas production with it. "The development of green energy is a potential threat to the entire global oil and gas sector, because it reduces the demand for hydrocarbon fuels. It will manifest itself as a slowdown in demand or even a decrease in demand for petroleum products, especially coal and natural gas. It is a long-term threat, and the industry will be able to adapt to it. In addition, there is such a nuance that part of the trajectory of a switch to green energy includes a complete abandonment of coal fuel with a temporary replacement of it  with gas at an intermediate stage. At this stage, Russia will have certain opportunities to expand gas exports to Europe. That is, it means not only risks for us ," the economist drew attention.

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