Igor Sechin, Chief Executive Officer of Rosneft, presented a speech “The economic underpinnings of conflicts” at the XXII Doha Forum, which is taking place on December 7-8 in the capital city of Qatar.

Igor Sechin's speech was in the spotlight of the forum participants. The report was presented on the main venue of the Doha Forum - Al Dafna Hall, which in the format of conferences can accommodate about 1.4 thousand people. There were no empty seats in the hall during the report of the head of Rosneft.

The Doha Forum is an international conference that has been held since 2003. Forum participants discuss a wide range of issues related to international security, energy transition and sustainable economic development.

Igor Sechin also attended the opening ceremony of the Forum, during which the participants were welcomed by Emir of Qatar His Highness Sheikh Tamim bin Hamad Al Thani, Prime Minister and Minister of Foreign Affairs of Qatar His Excellency Sheikh Mohammed bin Abdulrahman Al Thani.

Among the speakers of the Doha Forum are heads of state, ministers, heads of major international companies, organizations, as well as experts, analysts and well-known public figures.

OIL AND GAS ARE THE BASIS OF THE GLOBAL ENERGY MIX

Renewable energy sources are unable to meet the growing energy consumption by both developing countries and data centers, the role of fossil fuels in ensuring global energy security is becoming strategic, Igor Sechin said.

According to Mr. Sechin, one of the main challenges for the global energy industry has become unprecedented volatility in the energy market. “The root cause <...> is the use of energy for political purposes. <...> At the same time, energy security, the core mission of the energy sector, is given secondary importance,” Sechin said during his speech at the Doha Forum.

In order to raise the standard of living of the population in developing countries to at least half the level of the “golden billion” living in developed countries, it is necessary to almost double oil production. “At the same time, it is necessary to provide energy sources for the growing consumption of the soaring economies of India, Southeast Asia and Africa as a whole,” Igor Sechin said.

Estimates by leading international banks show that renewable energy sources are unable to meet the growing consumption of energy resources. “This means that the role of fossil fuels in global energy security is becoming strategic”, - the head of Rosneft stated.

Igor Sechin sees the world system built on the absolute dominance of the US and its allies as undergoing a painful transformation. Speaking at the Doha Forum, he emphasized that the economic background that accompanies political decisions is often the main reason for their adoption.

The Rosneft CEO recalled that it was not customary in the historical past to hide the economic motives behind wars at all. “Conquests of trade routes and military booty, campaigns for slaves, gold and spices; eventually all colonial wars were outright robbery, which continued for hundreds of years, though even then covered up by religious or civilizing mission. The Aztecs, Mayans and Incas<...> are well aware of this,” Igor Sechin noted.   According to Mr. Sechin, the total political and ideological cover for the true interests of war is a tradition that has not only survived, but has acquired complete and perfect forms over time.

The head of Rosneft noted that World War I began as a war for the redistribution of colonies between the old colonizers and the new ones, who were offended by the initial division of the world. The dramatic robbery of defeated Germany was one of the reasons that led to World War II, the main beneficiary of which was the United States, which gained enormous economic advantages over the war-ravaged economy of old Europe

« This system, built on the absolute domination of the US and its allies, is undergoing the painful transformation we are witnessing at the moment»,- Igor Sechin said.

SANCTIONS ARE DESTROYING THE GLOBAL MARKET

In his report, Igor Sechin emphasized that sanctions are destroying the institution of contractual obligations, the legal system itself, and ultimately the global market as a whole.

“In 1971, America finally abandoned the gold backing of the dollar, turning it into an instrument of unrestricted emission. The subsequent collapse of the Soviet Union and creation of a unipolar system following the take-down of its historical opponent eventually led to the erosion of the very foundations of democracy” Igor Sechin said.

“Over the last 20 years, we see that the number of U.S. sanctions has exceeded 15,000 , plus 5,000 sanctions imposed by their European allies . Unfortunately, the energy sector, due to its demand and importance, has become an instrument of special attention and pressure. The redistribution of the global energy market as a result of sanctions` massive application, destruction of competition, destruction of long-term contracts and supply chains is characterized today by price volatility, risks of shortages, and false ‘green’ transition goals,” Igor Sechin noted.

EUROPE IS THE MAIN VICTIM OF SANCTIONS

Europe's economy has become the most affected by sanctions and has lost the basis of its competitiveness, Rosneft CEO Igor Sechin said.

“Developments in Europe over the past few years are conclusions provoking. In the last two years alone, industrial production has fallen by 5%,” Igor Sechin said.

The head of Rosneft recalled that the unilateral illegal application of sanctions by the West affected about 40% of the world's hydrocarbon resource base “The targets of these sanctions are not only Iran, Venezuela and Russia, but primarily Europe, which has lost stable and relatively cheap supplies, and also Asia-Pacific growing markets, which are facing limitations on their economic needs,” Igor Sechin emphasized.

“I believe it is not a secret for intellectual politicians that Brexit was synchronized with the U.S. actions to weaken the economy of the European Union”, - Rosneft CEO said.

REAL ALTERNATIVES TO THE DOLLAR

The use of the dollar as a sanctions instrument has limited its use in international trade, and national currencies, primarily the RMB, have become alternatives to it, Igor Sechin believes.

The head of Rosneft added that the most universal and historically justified was the return of gold as an instrument of guaranteed security of national currency systems.

Igor Sechin noted that according to the World Gold Council, the share of gold in the world's foreign exchange reserves has grown by almost 8 percentage points and reached 20% in the last three years alone.

“The only way to restore the dollar to its status as the world's currency is to stop using it and its conductive financial infrastructure as a sanctions tool,” Igor Sechin emphasized.

THE U.S. WILL SUPPORT ITS ECONOMY AT THE EXPENSE OF OTHER COUNTRIES

According to Rosneft's CEO, if one analyzes President-elect Trump's program, elements of which were presented during the election campaign, it becomes obvious that it involves quite adequate measures aimed at supporting the American economy by lowering taxes and rates, returning jobs in the real sector of economy, protecting national producers and the domestic market.

“It is not surprising that Canada, Mexico, China, Europe will have to suffer. After all, Donald Trump is the president of the United States, not Mexico, Canada or China, to which new duties will be applied amid the paralysis of the World Trade Organization,” Igor Sechin said.

Moreover, in order to reduce the cost of fuel on the American market, it is likely that all restrictions on production will be lifted, taxes will be reduced, administrative barriers will be removed and investments in the real sector will be redirected away from the illusory alternative energy, the Rosneft head added.

TEXT OF THE REPORT OF THE CHIEF EXECUTIVE OFFICER I.I. SECHIN, CHIEF EXECUTIVE DIRECTOR OF ROSNEFT, “THE PERPETUUM MOBILE OF HISTORY? THE ECONOMIC UNDERPINNINGS OF CONFLICTS”

PRESENTATION TO THE REPORT “THE PERPETUUM MOBILE OF HISTORY? THE ECONOMIC UNDERPINNINGS OF CONFLICTS”

Rosneft Information Division
Rosneft Oil Company
December 7, 2024