Lead

Russia hopes for a resolution to the global energy crisis soon, as it is negatively affecting the oil market, Deputy Prime Minister Alexander Novak said on the sidelines of the St. Petersburg International Economic Forum (SPIEF). Novak, speaking in an interview broadcast on the Vesti program, said the industry needs stable prices favorable to both consumers and producers of energy resources.

Coverage Comparison

TASS, the Russian state news agency, reported Novak's remarks in multiple dispatches from the forum, which runs from June 3 to 6 under the theme "Pragmatic Dialogue: The Path to a Stable Future." The agency quoted Novak directly and placed his comments in the context of the forum's broader discussions on global economic transformation. TASS is the forum's official general information partner.

Key Claims

  • Novak said the energy crisis is negatively affecting the oil market, and Russia hopes it will be resolved soon. He warned that high prices carry risks, as consumers may switch to other energy sources, which would be unfavorable for the industry.
  • The deputy prime minister said the global energy market is short of about 12 million barrels daily, a figure he described as "slightly above 10% of the total global supply." He added that the share of the shortfall in global trade is even higher, around 15-17%.
  • Novak attributed the supply decline to the closing of the Strait of Hormuz and damage to infrastructure and energy facilities in Persian Gulf countries. He noted dramatic changes in supply are reshaping consumer behavior and logistics routes, leading to a shortage of tankers and a dramatic rise in freight costs.
  • In a separate forum appearance, Novak said the United Kingdom, after refusing direct purchases of Russian oil, is now buying petroleum products refined from Russian oil in Asia-Pacific countries. "They want to buy petroleum products made from oil that we supply to Asia-Pacific region, to India for example. And then buy petroleum products refined from our oil from there," he said.
  • Novak stressed that after sanctions were introduced, Russia redirected supplies to friendly countries — China, India, and Africa — and is not experiencing problems with sales. "Russian oil and Russian petroleum products remain in very high demand on markets," he added.

Perspectives

Russian Government

Deputy Prime Minister Alexander Novak presents the situation from the Russian government's viewpoint: the energy crisis is a global problem driven by supply disruptions in the Persian Gulf, Russia has adapted to sanctions by redirecting exports, and Russian energy remains in high demand. He frames the crisis as a risk to market stability and warns of potential long-term consequences, including a shift by consumers away from fossil fuels.