ITAR-TASS, 10.06.2006

Long-term contracts and reliable forecasts for energy consumption markets will form the basis of energy security—Alexei Kudrin

ST. PETERSBURG, June 10. /ITAR-TASS/. Long-term contracts and improvement of forecasts for energy consumption markets will form the basis of energy security, finance minister of the Russian Federation, Alexei Kudrin, announced at a press conference on Saturday.

He noted that long-term energy supply contracts are important elements of stable demand, ensuring energy security for consuming countries’. Such contracts will also make possible an increase of investments in energy production. Moreover, the minister considers the quality of forecasts of demand for energy resources to be the most important element.

Russian finance minister noted that “an unplanned growth of energy consumption was observed” even in “such a centralized economy as China”. Kudrin emphasized the necessity of opening access to information on energy strategies for both oil producing and oil consuming countries.

Answering the question about a possible future gas shortage due to the slow growth of Gazprom’s investments in gas production, the minister noted that “the issue was not formulated in this way, nor was it discussed in this aspect at the meeting of G8 finance ministers.”