VINACHEM

Russia is ready to continue gas supplies to Europe via several routes, not only via transit through Ukraine, Russian Deputy Prime Minister Alexander Novak said on Wednesday.

"As of today, the issue ... has not been resolved, although Europeans and European countries are interested in this. But this depends primarily on the agreement between the European Union and Kiev on the possibility of such supplies. We, in turn, have always stated that we are ready to continue to supply gas not only along the existing line, there are a number of other routes," Novak told the Rossiya 24 broadcaster.

The situation with gas reserves in Europe is tense despite supplies from Russia, and without them the situation will be even more difficult, the official added.

In the next 2-3 years Russia will become 90% independent from the import of technologies and equipment for the oil and gas industry, Novak said.

"I think that in the next 2-3 years, if we take technologies and equipment for the oil and gas industry, we will reach an almost 90% level of independence," Novak said.

Global oil demand will grow by 1.2 million barrels per day in 2024 and by 1-1.5 million in 2025, Alexander Novak said.

"The situation is stable and normal now... In general, we see that this year the volume of demand on world markets will increase by 1.2 million barrels per day and will amount to 104.4 million... Next year, we estimate about the same — from 1 to 1.5 million barrels per day, an increase," Novak said.

Russia will export 33 million tonnes of liquefied natural gas in 2024, Novak said.

"This year, we expect the total volume of liquefied natural gas supplies to be about 33 million tonnes. This is a fairly large volume already," Novak said.

Russia's pipeline and liquefied natural gas supplies to Europe have increased by an average of 18-20% in 2024, Alexander Novak said, adding that 50 billion cubic meters were delivered in 11 months of the year.

"If you look at the volumes of supplies [of pipeline gas and liquefied natural gas] to Europe, they are 18-20% higher than last year... In 11 months, despite all the statements and sanctions pressure, about 50 billion cubic meters of gas have been delivered because gas is a highly ecological product; it is in demand, and from the point of view of supply logistics and price, Russian gas is the most economically advantageous," Novak said.

The decision to postpone start of oil production growth within OPEC+ is rational and will to ensure a smooth supply growth in conditions of a smooth demand growth, Novak said.

"The start of the recovery [increasing growth of oil production] has been postponed to April 1 of next year, with a time lag of recovery of one and a half years. In our opinion, this is a rational decision that will allow for a balanced and further development of the situation on the oil market, allowing for a smooth increase in supply in conditions of smooth growth in demand, along with countries that are not part of OPEC+," Novak said.

Energy consumption in Russia is growing at a record pace, with an increase of 3% in 2024, Russian Deputy Prime Minister Alexander Novak said.

"Energy consumption in our country is growing, and it is growing at a record pace. This year, we expect an increase in electricity consumption in the country by 3% compared to last year. This is a very high level, it usually grew by 1-1.5%," Novak said.

The Russian government may expand the ban on crypto-mining in more regions if governors find it necessary for electricity security, Alexander Novak said.

"If there are any appeals from the regions or from the governors, who, as part of their forecast for social and economic development, will see that there might be a shortage of resources to connect industrial consumers or social facilities, primarily schools and hospitals, then restrictions [on crypto-mining] will be imposed in order to ensure the connection of these social facilities and under-construction enterprises," Novak said.

The full ban on crypto-mining will apply in the republics of Dagestan, North Ossetia, Ingushetia, Chechnya, Kabardino-Balkaria and Karachayevo-Circassia, the Donetsk and Lugansk (also known as Luhansk) People’s Republic, and the Zaporozhye and Kherson regions. A partial ban will be introduced in certain parts of Buryatia, the Irkutsk Region, and the Zabaikalsky Territory.

On December 24, the Russian government introduced a total ban on cryptocurrency mining in 10 Russian regions with fragile electricity security and partial restrictions in three other regions during the fall-winter period starting from January 1, 2025, until 2031.  – Source: Sputnik –