Novak predicted a new round of energy crisis in 5-10 years

In the next ten years, the world will face a shortage of energy resources and a new round of crisis, declared In an interview with TASS, Deputy Prime Minister of the Russian Federation Alexander Novak.

“Many Western oil and gas companies are already wary of all these processes and withdraw funds in the form of dividends instead of investments. In the future, this will lead to the fact that as a result of a decrease in the volume of investments in energy resources in the EU, there will be a shortage, the world will face a shortage and a new round of the crisis,” the Deputy Prime Minister said.

According to him, serious problems will begin within 5-10 years, most of all they will affect European countries. Speaking about sanctions against Russia, Novak noted that the West receives “momentary benefits”, which are political, not economic. In the long term, these decisions provoke a deep crisis and destabilization in Europe, Novak believes.

On December 19, the EU countries agreed on a gas price limit of 180 euros per 1 MWh, which corresponds to $1,975 per 1,000 cubic meters. The ceiling will come into force on February 15, 2023. Dmitry Peskov, the press secretary of the President of the Russian Federation, called the EU decision “an attack on market processes”, noting that Moscow will need time to prepare a response to new restrictions.

Commenting on these decisions, Novak saidthat European suppliers, not Russia, will suffer from the gas price limit.

“Today, I want to say that the Europeans are doing the same as if against Russia, accusing Russia of rising prices, but in fact this will primarily affect European consumers, European suppliers. Because today the main suppliers to Europe are Norway, Algeria, this is American liquefied gas. The point is that these suppliers will suffer first of all, and this will somehow concern them, ”Novak said (quoted by RIA Novosti).

The Deputy Prime Minister stressed that “illogical decisions” have been made in the gas market. According to him, “no one yet fully understands how this mechanism will work.”

On December 5, the price ceiling for Russian oil agreed upon by the European Union in the amount of $60 per barrel also came into force. In addition to the EU countries, the G7 countries and Australia also joined the ceiling. Russian President Vladimir Putin said that the decree on the response to the oil price ceiling would be signed on December 26 or 27. According to him, Russia has nothing to lose from the imposed ceiling on oil prices.