Russian deputy energy minister highlights Türkiye’s role as energy hub

Russian Deputy Energy Minister Pavel Sorokin emphasized growing challenges of ensuring accessible and affordable energy worldwide during his address at the Istanbul Energy Forum.

He stated, “While the global community works towards making energy more accessible, securing these resources is becoming increasingly difficult.”

LNG trade and sustainable energy transition

Sorokin noted the growing liquefied natural gas (LNG) trade, which is increases annually by 4-7%, outlined ongoing efforts to make LNG competitive.

Addressing the importance of a pragmatic energy transition, he advocated for the use of natural gas alongside renewable energy to reduce carbon emissions, emphasizing the need for balanced and fair strategies.

It’s not just slogans that are needed. We’re not saying, ‘Let’s go green at all costs.’ It has to be reasonable. Natural gas is an important resource for an equitable transition. It should not be just words, slogans and theoretical goals. We need to reduce carbon emissions. For example, renewable mix is an important solution. A mix of cheaper green energy and gas can be good in terms of emissions.

Russian Deputy Energy Minister Pavel Sorokin

Rising energy costs impacting production

Sorokin highlighted the difficulty of lowering energy costs below a certain threshold, affecting production facilities worldwide. He stated, “With refinancing rates near zero, we must move beyond the traditional Capex concept and plan projects accordingly.”

Fragmentation of global energy markets

Sorokin noted an increasing divide in global energy markets, influenced by inflation and political tensions. He commented, “Even in a global market, nations are primarily focusing on their own regions. Countries prioritize their energy and economic security, which adds to rising costs.”

The whole world is working towards energy accessibility and affordability. But it is becoming increasingly difficult to get these resources. Different countries are of course interested in their own energy and economic security, but this means that costs are rising. As Mr. President Ilham Aliyev said at the COP, each country has its own resources, its own opportunities. Türkiye, for example, has a similar situation. It has the opportunity to take these resources and sell them to its own citizens at an affordable price. It starts to affect the cost of energy and legal regulations. When planning additional tariffs, countries need to think about this through a cost filter.

Russian Deputy Energy Minister Pavel Sorokin

Regional efforts and collaborative success

The minister praised Türkiye’s approach to utilizing its resources to provide affordable energy for its citizens. He added, “As President Ilham Aliyev highlighted at COP, every nation has its unique resources and opportunities. Türkiye exemplifies this with its ability to manage resources effectively.”