IN BRIEF: Key statements by Deputy PM Novak at Russian Energy Week plenary session

MOSCOW, October 16. /TASS/. The Russia-US diesel deal is beneficial to all parties, Deputy Prime Minister Alexander Novak told a plenary session of Russian Energy Week.

He stressed that EU criticism of the agreement goes against the interests of European consumers.

Novak stressed that Russia has been and remains a reliable energy supplier to global markets, including the West.

TASS has summarized the key takeaways from the deputy prime minister's speech.

"I view this deal as a pragmatic solution that is advantageous for all market participants."

"As for criticism from our European partners, we have grown accustomed to their political decisions and statements running counter to the pragmatic demands of the market and consumers. It is European consumers who suffer first and foremost."

"The market is currently experiencing a significant shortage - we estimate it at about 25% of global trade. This is primarily due to supply disruptions from the Persian Gulf to external markets. Furthermore, Russia banned exports in July to supply its domestic market."

"On a per-barrel basis, the current diesel price is roughly $200 per barrel against a crude oil price of $120. Crack spreads for diesel relative to crude oil have widened."

"The key factor for reliability today is physical access throughout the entire supply chain - from production and processing to delivery. In this regard, Russia has always been a reliable supplier of energy resources - both to Western Europe, where long-term infrastructure projects for oil and gas have been built since the 1960s, and to global markets today."

Europe's costs have risen since it began shifting away from affordable and stable Russian supplies: "Many industrial operations have relocated to other countries; there are bankruptcies and business closures. Yet, today, politics takes precedence over rational decisions that would benefit consumers. In my view, everything they do regarding energy policy is to the detriment of their own economies and consumers."

Russia is prepared to boost energy supplies to Europe, including under existing long-term contracts: "We are ready to provide larger supply volumes [to Europe]. It was not us who rejected affordable and stable energy supplies from Russia; Europe made that decision for political reasons."

"We remain committed to fulfilling our contracts, including long-term agreements - some of which, for gas, run until 2035-2040. A refusal to take supplies under these contracts is a unilateral decision that has no basis in the existing legal and regulatory framework."

Russia has supplied energy resources to Europe worth $320 billion since 2022, including $21.3 billion in the first nine months of 2026.

Energy consumers are seeking alternatives to hydrocarbons as global demand declines: "Today, consumers are exploring options for accelerated energy substitution, reducing energy expenditures, and improving energy efficiency," Novak stated.