Deputy Prime Minister Alexander Novak spoke on the Russia 24 television channel, outlining a clear pivot in Russia’s gas sector toward broader diversification that extends beyond traditional markets. He described a strategic shift that emphasizes strengthening supply routes to the east, while simultaneously expanding the capacity and role of liquefied natural gas as a central plank of the energy portfolio. This new direction, Novak stressed, marks a structural change in how Russia views its gas resources and how it positions itself in a rapidly changing global energy landscape. He emphasized that diversification is not a buzzword but a practical, ongoing effort that touches every level of production, logistics, and international cooperation. The aim, he noted, is to reduce dependence on any single market and to unlock new opportunities for long-term energy security and economic resilience.
Novak underscored the importance of expanding shipments to Asian markets, describing gradual yet deliberate increases in gas supplies to the east as a core component of Russia’s growth strategy. He pointed to liquefied natural gas as a crucial vector for development, highlighting how LNG can open new routes and customer bases, diversify pricing exposure, and support flexible delivery options for buyers around the world. The Deputy Prime Minister framed LNG not merely as a product but as a strategic capability that can widen Russia’s influence in international energy trade, complementing pipeline gas where feasible and creating a more robust overall gas export framework.
“We currently have a global diversification process in our gas industry,” Novak declared, framing the shift as a comprehensive, country-wide effort rather than a series of isolated moves. He explained that the diversification includes structural reforms, investment in new technologies, and closer coordination between state entities and private enterprises to accelerate the deployment of advanced gas projects, storage solutions, and export logistics. The objective is to ensure a steady, reliable supply channel that can withstand market fluctuations while still delivering competitive prices to consumers and partners.
On October 11, Novak indicated that Russia is prepared to increase the supply of petroleum products to Saudi Arabia, signaling a continuation of close collaboration between the two nations. He noted a commitment rooted in mutual interests, with Russian companies integrating more closely with Saudi Aramco, particularly in the area of artificial intelligence and digital technologies that can optimize refining, trading, and logistics. This emphasis on innovation reflects a broader trend of using smart technologies to improve efficiency and transparency across the energy value chain. In parallel, Russia and Saudi Arabia extended their agreement on voluntary oil production cuts in early October, a move aimed at stabilizing global markets and supporting price levels that reflect current supply and demand dynamics.
Earlier, Novak, speaking at the event’s sidelines, clarified that the government had not yet taken certain steps mentioned in other forums and that the fiscal policy framework remains focused on maintaining balanced measures. He stressed that any consideration of increasing the tax burden on the oil sector would be weighed against the broader goal of protecting the economy and mitigating the financial requirements of adjusting the damping mechanism designed to absorb price shocks. The comments highlighted the ongoing debate about how to finance energy sector reforms without imposing undue costs on production, investment, and consumer prices.
There were also discussions of how external factors, including global monetary conditions, currency dynamics, and cross-border capital flows, influence the ruble and the stability of the energy sector. An earlier assessment by the Central Bank pointed to several factors that complicate ruble strengthening, such as inflation expectations, capital movements, and the interplay between domestic demand and export revenues. The overall narrative suggests a careful balance between encouraging investment in energy projects, ensuring fiscal sustainability, and maintaining exchange rate resilience in the face of international economic pressures.