Igor Sechin, CEO of Russian energy giant Rosneft , said the sanctions imposed by the US and Europe on Russia and China will cause an economic crisis in the West.
The West has imposed numerous sanctions on Russia since it annexed Crimea in 2014 and launched a military operation in Ukraine. China has accused the US and its allies of undermining the rules-based multilateral trading system by repeatedly using discriminatory policies, tariffs and unilateral sanctions that violate WTO commitments.
Speaking at the Russia-China Energy Business Forum (RCEBF) in Beijing on November 25, Rosneft CEO said that consumers in the West are currently paying high energy prices and this will weaken the West's power.
“The West’s continued aggressive sanctions policy against both Russia and China will inevitably cause another economic crisis in Western countries,” Mr. Sechin said. “Not all Western politicians are aware of the risks they face.”
Last month, the Trump administration announced sanctions against Rosneft and Lukoil, Russia's second-largest oil producer, to increase pressure on Russia to sign a peace deal with Ukraine.
Essentially, Russia has lost the European Union market, which used to be its biggest source of revenue from oil and gas sales.
Russian President Vladimir Putin said his country would not bow to pressure and would pursue policies it deemed appropriate.
"I would like to reiterate that, like China, Russia has been under increasing pressure from the outside for many years," Mr. Sechin said. "The main goal is to push our country out of the global market. The experience of the past 10 years shows that these attempts are doomed to failure."
Russia currently holds the world's largest natural gas reserves and is the world's second-largest oil exporter.
According to Rosneft CEO, the total value of Russia's natural resources exceeds $100 trillion, almost double that of the US.
"Russia, with its unique resources, can ensure energy security for the entire Eurasian region. The total value of our country's natural assets is almost $100 trillion, almost twice as much as the United States," Sechin said.
The CEO stressed that Russia is a key player in the global energy market, accounting for about 15% of hydrocarbon exports. He affirmed that Russia and China have a big competitive advantage when it comes to electricity prices lower than the West.
The top Russian energy official said that electricity prices in Russia and China are half lower than in the US and one-third to one-quarter lower than in the EU.
High electricity prices in the West could lead to higher government and household spending in the West, Mr. Sechin said.
