19 Sep 2022 10:58

Putin dismisses EU blame for high gas prices

SAMARKAND. Sept 19 (Interfax) - Europe is trying to hide its own mistakes by blaming Russia and Gazprom for rising gas prices, President Vladimir Putin told reporters, commenting on European Commission President Ursula von der Leyen's proposal to send him Europe's electricity bills.

The energy crisis in Europe did not begin with Russia's special military operation in Ukraine, it began almost a year earlier with the "green" agenda, Putin said.

"We need to look after the climate, of course, prevent passing some point of no return where the climate will start to change in such a way that it will be impossible to stop and we turn into one of those planets in the solar system that previously had an atmosphere, according to scientists, but now doesn't. Of course, no one wants this, but things must be done carefully, cautiously, gradually," Putin said.

European politicians opted to curtail fossil fuel energy altogether for transitory political gains in their countries, he said. "Banks stopped issuing loans. Local government agencies stopped allocating land for future development. They stopped carrying out plans to build energy infrastructure. Investment in conventional energy decreased sharply. But all this started to happen several years ago," Putin said.

"Now it seems prices for gas have risen in the United States and production is growing, but not as quickly as they would like. Why? Yes, banks are afraid to issue loans. Specialists and experts understand everything very well, but these populist statements, that someone is to blame and go there, it's so as to give them protection from the outrage of their own countries' citizens," Putin said.

The problem is that green energy was not ready to meet the huge energy needs to support industrial growth, he said. "The economy is growing, but there is less and less energy," he said.

He also recalled that Russia and Gazprom tried to persuade Europe not to abandon long-term contracts, arguing that producers need to be confident that they can sell their gas before investing billions of dollars in new fields.

However, Europeans preferred the spot market, he said. "They essentially forced us to factor a significant share of the spot price into the contract price and Gazprom was forced to not only factor the basket of oil products and oil into the price of gas, but also spot. Spot began to grow and prices even on long-term contracts grew. But what do we have to do with it?" Putin said.

He also dismissed accusations that Russia is halting gas supplies to Europe, recalling that Poland imposed sanctions against the Yamal-Europe pipeline, closing this route.

"I told [German Chancellor Olaf] Scholz, call Warsaw and ask them to open the route. Two gas pipeline strings across Ukraine; they supply Ukraine with arms, and it closed one of the routes - that's what you get. Why? Call Kyiv, tell them to open it," Putin said.

He also said that Siemens was present and the opening of the last shut-down turbine on the Nord Stream gas pipeline. "They saw that there is an oil leak there, this is an explosion hazard, they put their signatures that it needs to be repaired and cannot be operated," Putin said.

He also said that Siemens' UK subsidiary has to provide a document stating that sanctions have been lifted against turbines. "Because this is our property and Gazprom must be confident - maybe tomorrow it'll want to sell it to Iran, China or someone else," Putin said, adding that there must be documents on the removal of sanctions and normal technical condition, but Siemens' subsidiary is not providing anything and the contract is not being amended to account for changes in logistics, as the turbine was delivered to Germany, not to Russia. Therefore, the Nord Stream pipeline is shut down.

"At the end of the day, when push comes to shove, go and lift sanctions from Nord Stream 2. Fifty-five billion cubic meters per day, we just have to push a button and it's all a go. No, they closed it themselves. Here they closed, here they can't repair, they put a new pipeline - Nord Stream 2 - under sanctions and we're to blame? Let them think about who's really to blame for what, and not blame us for their own mistakes. Gazprom and Russia intend to and will fulfill all their obligations under our agreements and contracts as we always have. There have never been any disruptions here and there won't be," Putin said.