Continuing sanctions against Russia, China to result in another economic crisis in West - Rosneft CEO Sechin
MOSCOW. Nov 25 (Interfax) - Continuing aggressive sanctions against both Russia and China will result in another economic crisis in Western countries, Igor Sechin, Executive Secretary of the Presidential Commission on Fuel and Energy Complex Development Strategy and Environmental Safety and CEO of Rosneft , said.
"Local goals are being set to strengthen sanctions in the energy sector; energy assets are being seized in international jurisdictions; and instead of achieving the stated goals, energy consumers in Western countries are already in a dramatic situation," Sechin said at the 7th Russia-China Energy Business Forum.
Sechin believes that a U.S. car owner pays $3 per gallon of gasoline with the average market price of oil currently at $60 per barrel. Meantime, a consumer of electricity in the United States actually pays $125 per barrel of oil equivalent with the current price of electricity at 18 cents per kilowatt-hour for households, namely over $6 per gallon of gasoline.
"Electricity prices are even higher in the European Union. In Germany and Italy, electricity costs of 40 cents per kilowatt-hour for households translate into $14 per gallon of gasoline, which is equivalent to $300 per barrel of oil equivalent. Continuing sanctions pressure could only result in a significant increase in real prices," Sechin believes.
"The forecast is very realistic. Such electricity costs will hinder developing new projects, including data centers; render it virtually impossible to convert transport to electric traction; require increased budget expenditures to subsidize housing and utilities; and, ultimately, create the preconditions for a decline in economic potential and a sharp increase in household spending in Western countries," he said.
"Deprived of access to Russia's competitive resource base and China's component base, our Western opponents could lose their technological and economic influence, which would create the preconditions for the realization of the risks of civilizational redistribution," Sechin concluded.
