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The Price for Russian Oil Will Be Decided Based On the Actual Directions of Supply, Not in Europe, the Head of Rosneft Notes

06 February 2023

This opinion was expressed by Rosneft Chief Executive Officer Igor Sechin at the ministerial session during the Indian Energy Week, a key South Asian forum dedicated to energy security and environmental sustainability.

"If there are no Russian oil supplies to Europe, there is no reference price. The reference prices will be decided where actual volumes of oil are supplied to", the head of Rosneft said. "We will probably have to give up trading with cash-settled futures at the first stage, in order to adjust these market indicators", he noted.

"As it is written in the Ecclesiastes: "If something is crooked, it cannot be made straight; if something is not there, it cannot be counted", Igor Sechin said.

"Non-market interventions must be treated calmly. Experts know how to find a solution", Igor Sechin stated.

According to him, the fundamental reason for the energy crisis is underinvestment in the industry amid growing consumption and insufficient pace of resource base replenishment. The annual OPEC report indicates that to meet the growing demand for oil alone by 2045, investments to the tune of $12 trillion are needed.

"We have to pay attention to this, it is a serious situation," Igor Sechin pointed out.

Information Division
February 6, 2023