Russia has churned out agreements on the occasion of the Russian Energy Week Forum

Russian Energy Week International Forum took place during 3-6 October, in Moscow. An event attended by some of the largest energy companies in the world and where Russia has concluded a number of energy agreements. This Forum has been held to demonstrate the prospects of the Russian fuel and energy industry and unlock the potential of international cooperation in several industries such as gas, oil, coal, petrochemistry, electricity and energy conservation and increased energy efficiency.

Attending the opening of this forum, Russian President Vladimir Putin said: “It is extremely important for us to be sensitive to trends in the global energy industry in order to effectively realize our competitive advantages and, together with other countries, form a common energy space and a common energy future.”

This year marks the 50th anniversary of Russia’s gas exports to Europe. The first customer for Russian gas was Austria, country that is one of Russia’s best friends on the old continent. Moreover, Europe’s importance in terms of gas demand has been highlighted by Alexey Miller, CEO of Gazprom: “The key market for Gazprom is undoubtedly Europe. It has been our number-one market for 50 years.”

Beyond speeches, image-related opportunities and meetings with various people, the role of such an event is also to facilitate the signing of agreements and business contracts. During the event in Moscow, no less than ten agreements have been signed, including the Intergovernmental Protocol to the agreement between the Government of the Russian Federation and the Government of the Republic of Kazakhstan (on trade and economic cooperation in the field of oil and oil product supply to the Republic of Kazakhstan).

In this regard, Romania has been struggling to conclude a Memorandum with KMGI, part of KazMunayGas, an agreement whose effects would mean investments and the creation of new jobs. Of course, Romania does not have Russia’s bargaining power, but it could offset it by pragmatism and the determination to build new businesses and attract new investments.

Here are the most important agreements signed at the Russian Energy Week International Forum:

  • A long-term loan agreement between Nizhnekamskneftekhim and Deutsche Bank to cover the Euler Hermes insurance policy on construction of a new power plant in the amount of approximately 240 million euros to the end of 2033;
  • An agreement on cooperation in the modernization of street lighting between the Administration of the Tambov Region and SFERRUM. Investments amount to approximately RUB 50 million;
  • An agreement on a strategic partnership and cooperation between NOVATEK and Siemens;
  • An agreement on the implementation of a pilot project for the installation of energy storage systems at solar power plants in the Altai Republic between IDGC of Siberia, Hevel and SAFT;
  • An agreement on expanding cooperation between TAIF and Siemens;
  • A cooperation agreement signed by the Roscongress Foundation and the KAZENERGY Kazakhstan Association of Oil-Gas and Energy Sector Organizations;
  • A cooperation agreement between the Government of the Chukotka Autonomous Region and RASU;
  • A memorandum of understanding between SPIMEX and S&P Global Platts;
  • An agreement on a strategic partnership between Rosseti and Sberbank.

Romania has been aiming for some time to become a regional energy power. Romanian officials, both from the current government and from the previous governments, reiterate that “Romania can become a regional energy hub”. The arguments brought are that “we have a diversified energy mix”, “we are a country blessed with resources”, “we are a net energy exporter”. Added to all this are the hopes related to the Black Sea gas reserves. But the Offshore Law, the document needed to start production, hasn’t been completed yet.

Other projects, that the Romanian state classifies as priority or strategic, are still on the agenda of officials, waiting… In the meantime, Russia moves fast and secures its energy businesses and influence in Europe and not only for many years to come.

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