Oil windfall: Putin orders to maximize profits from Iran war crisis
Photo: Russian President Vladimir Putin (Getty Images)
Russian President Vladimir Putin has called on the country’s energy companies to take advantage of the sharp rise in oil and gas prices caused by the war in the Middle East, Bloomberg informs.
According to the Russian leader, the additional export revenues should be used to reduce the debt burden owed to Russian banks.
Putin acknowledged that the current situation on the global market may be short-term, so Russian companies should take advantage of the moment.
"Changes in the balance of supply and demand for hydrocarbons will, of course, lead to a new stable price reality. That will inevitably happen, so it’s important for Russian energy companies to take advantage of the current moment, including by using additional export revenue to reduce their debt burden (to Russian banks)," the Russian president said during a meeting with government officials and executives of energy companies.
He added that Russia will continue supplying oil and gas to its "reliable partners" in different regions of the world, particularly in the Asia-Pacific region and in countries of Eastern Europe, including Hungary and Slovakia.
At the same time, Putin noted that Russia is also ready to cooperate with Europe, but only if European countries demonstrate their willingness for long-term partnership.
"But we need some kind of signals from them that they are ready and willing to work too and will provide us with this stability," he concluded.
Meanwhile, the escalation of the conflict in the Middle East has caused serious turmoil in the global energy market. One of the main reasons was a sharp reduction in shipping through the Strait of Hormuz — a key route for transporting oil and gas.
Due to the threat of attacks, Iran has effectively restricted the movement of vessels in the area, raising concerns about disruptions to global energy supplies.
Against this backdrop, oil prices have surged sharply and exceeded the $100 per barrel mark.
The situation has also raised concerns among the world’s leading economies. The International Energy Agency has urged the G7 countries to consider jointly using strategic oil reserves in order to stabilize the market and curb further price increases.
