CEM REPORT | Russian President has revealed that his country can still influence the domestic market in regards to oil, gas and coal.
In the face of sanctions by Western governments to President Vladimir Putin of Russia has expressed confidence in its energy sector.
“As far as Russian oil, gas and coal are concerned, we can increase their demand on the domestic market.” he said.
According to NAN, he also said “We will stimulate the further processing of raw materials as well as increase the supplies of energy resources to other regions of the world where they are really needed,”
He further added that his country will make do of available resources including expanding internal transport routes.
‘`I have ordered the construction of the Northern Latitude Route, a 700-kilometre railway line south of the Yamal Peninsula, to begin this year.” President Putin said.
The main secret of Russia survival in the midst of sanction is that some big names in commodity trading still deal in Russia energy products
Oilprice.com reported Wednesday that according to ship tracking and port data, Switzerland’s Vitol, Glencore, and Gunvor as well as Singapore’s Trafigura, have all continued to lift large volumes of Russian crude and products, including diesel.
Indeed, Oleg Ustenko, economic adviser to Ukrainian president Volodymyr Zelensky, has written to the four companies demanding that they stop trading Russian hydrocarbons immediately since export revenues are funding Moscow’s purchase of weapons and missiles.
While it is true that Russia is surviving, considerable damage has been done to its economy which may take a while to recover from. Head, Russian Court of Accounts, Alexei Kudrin, acknowledge this fact that Western sanctions are having an effect.
“Of course, our economy will have to be rebuilt,” he said,
He also added that “the first phase of restructuring would take about two years if sanctions remained in place,”
He further said, it will take a long while before domestic product will completely replace imported goods.
Despite all sanctions imposed on Russia, to force an end on attacks on Ukraine, it finds other options to survive.