Plenary session of Russian Energy Week International Forum

The theme of this year's forum is Building the Energy of the Future Together.

Held in Moscow between October 15 and 17, Russian Energy Week brings together representatives from 85 countries, including government officials, senior corporate executives from energy companies, as well as experts and researchers. The business programme includes over 60 events.

Russian Energy Week is a key international platform for discussing pressing matters pertaining to the development of the fuel and energy complex and fostering multilateral energy cooperation in a multipolar world.

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President of Russia Vladimir Putin: Good afternoon, ladies and gentlemen, friends,

Welcome to the 8^th Russian Energy Week International Forum. You have already had a chance to do some networking here and exchange views. I doubt that I can tell you anything you do not know already. Still, allow me to share my position with you on several key matters.

It goes without saying that we are pleased to once again welcome to Moscow the heads of major international companies, specialists, and industry experts for a substantive dialogue on developing the energy sector.

This dialogue is of particular importance amid dynamic and profound shifts in the global market. In fact, energy companies and service providers, energy producers and consumers, and even entire countries are going through this exact stage in their development.

In my remarks, I would like to elaborate on some of the main trends in the present-day energy sector. Of course, I will not fail to share our perspective regarding the challenges the global and Russian fuel and energy sectors face.

The first major challenge is the restructuring of global energy relations. In many ways, this is a natural and objective process: new centres of economic growth emerge, and energy consumption in these regions increases accordingly. At the same time, we are also witnessing an artificial disruption of the energy system, driven by the aggressive and assertive actions of certain Western elites.

As is well known, many European countries, for example, have refused to purchase Russian energy supplies under political pressure. I have already noted the consequences of such decisions for these countries, particularly in terms of their economic and industrial potential.

The repercussions of these actions are evident within the European Union, including a decline in industrial output, rising prices due to more expensive imported oil and gas, and a reduction in the competitiveness of both European goods and the broader economy.

According to Eurostat, industrial production in the eurozone in July of this year remained 1.2 percent below 2021 levels. Germany, often referred to as the engine of the European economy, has also experienced a continued decline, with industrial output in July falling by 6.6 percent compared to the 2021 average.

However, the focus today is not on European challenges, but on the global energy market as a whole. As I previously noted, energy supply chains are undergoing an objective transformation, with logistics increasingly shifting towards the Global South - dynamic countries in the Asia-Pacific, Africa, and Latin America. This shift involves more reliable routes, the development of new hubs and ports designed to meet both current and future demands of energy consumers.

Energy demand is undoubtedly growing: the global economy continues to expand year after year, despite various challenges. While the pace of growth may fluctuate, overall demand remains positive. For instance, global oil consumption is projected to reach 104.5 million barrels per day this year, over a million more than last year.

The primary drivers of this growth are the rapidly expanding petrochemical industry, which is outpacing global GDP growth, and the transport sector. Many earlier plans to phase out internal combustion engines have realistically been delayed, meaning petrol-powered vehicles remain in widespread use and will continue to be for the foreseeable future. While the adoption of electric motors is indeed increasing, electricity still needs to be generated, it does not simply appear from a wall socket. It has to be produced using heating oil, coal, and other energy sources.

To be continued.