Business

Former Lukoil chief warns against EU ban on “irreplaceable” Russian oil

Former chief of Russia’s second-largest oil group said the European ban on “irreplaceable” crude oil in Russia would be the “most negative scenario” for all parties as the EU’s debate on embargo intensifies. I warned.

Vagit Alekperov, who resigned as CEO of Lukoil last month, told the Financial Times that the EU’s move to block Russia’s oil imports would be a “shock for everyone” after being hit by western sanctions. I said it would be.

“By imposing sanctions, the Western nations gave a clear signal and declared their position. There is no need to tighten them further,” he said.

Alexperov’s comment is a fierce debate in the EU (which relies on Russia for a quarter of its oil imports) on whether to increase pressure on Moscow but incite an oil ban that exacerbates Europe’s energy crisis. Come out inside.

European Commission President Ursula von der Leyen hopes to stand side by side with G7 partners, including the United States, which imposed oil sanctions on the EU in March. However, the EU’s move to include an oil ban in Russia’s sixth action package has run into opposition from Hungary that it cannot afford to find alternative fuels.

Alekperov said the oil import ban “Russia will have to cut production and freeze wells, as it did at the beginning of the 2020 pandemic, because all the quantities in Europe will be overnight and others. It’s impossible to turn to the market. “

But he warned the EU that “it is impossible to replace a major energy exporter like Russia in the medium term.”

According to Alekperov, it will take years to build a new infrastructure to redirect Russian crude oil currently flowing to Europe, especially in the recent crisis that has already “hundreds of billions, trillions of trillions” of global industry. In an environment where you have lost your “dollar” investment.

“The world’s energy mix has been set by decades of investment and generations of expert efforts, but military conflicts can end soon,” he added. “You don’t have to weaken or destroy it.”

Regarding the decline in energy security and rising prices after Russia’s invasion of Ukraine, he said: “This is not a natural process such as decarbonization, nor a short-term consumption crisis like a coronavirus pandemic. This is a very serious energy crisis and has a long-term adverse effect on all market participants. Gives. “

The Commission provided a € 2 billion loan to Hungary and other Central European countries as part of the € 210 billion RepowerEU program to achieve energy independence from Moscow.

Alekperov was one of Russia’s longest-serving oil company executives until Lukoil urged him to resign after 30 years of command under British and Australian sanctions.

Originally from Azerbaijan, he worked as an oil field before moving to Siberian oil field management before moving to the Soviet Department of Oil and Gas, where in 1991 he integrated three of Soviet’s largest oil fields to establish Lukoil. The company was among the top three oil companies in the world. Producer in 1992.

Alekperov saw it through 1993 privatization, listing in London, and the transition to international reporting standards. The LSE closed trading on Lukoil shares in March.

He holds an 8.5% stake, either directly or through family trusts and mutual funds. Forbes His wealth in May was estimated at $ 22 billion, up from nearly $ 25 billion last year.

Like other Russian companies, Lukoil has been hit by various western measures on the Russian economy. The company warned last month that it may need to close its refineries as its ability to sell and store petroleum products overseas is declining.

Alekperov British government It is described as benefiting from or continuing to support the Russian government. However, he insisted on Lukoil, whose management did not influence political decisions or processes.

His decision to resign was “made for the company. I’m not going to hide it, but it was sad for me,” he said.

“We often find that sanctions are of a chaotic and emotional nature,” he said. “They make no political decisions and affect those who have no political influence. Not to mention their de facto mistakes, names, titles, or reasons for sanctions. At least from a legal point of view. It doesn’t look serious and denies the importance of these measures to the public. “

Former Lukoil chief warns against EU ban on “irreplaceable” Russian oil

Source link Former Lukoil chief warns against EU ban on “irreplaceable” Russian oil

Back to top button