Alexander Novak at the SPIEF panel session: Global energy is experiencing stress

Published on: 2026-06-05

Source: Government of the Russian Federation –

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Deputy Prime Minister of the Russian Government Alexander Novak spoke at the panel session “Global Energy Systems: How the World Energy Sector Responds to Challenges and Risks” within the framework of the St. Petersburg International Economic Forum, with the participation of the Minister of Energy of Saudi Arabia Abdulaziz bin Salman Al Saud, the Minister of Petroleum and Mineral Resources of Egypt Karim Badawi, the Minister of Mining Industry and Energy of Serbia Dubravka Đedović, OPEC Secretary General Haitham al-Ghais, IEA Secretary General Fatih Birol, Chairman of the Board of Gazprom Neft company.Aleksandra Dyukova, CEO of the Russian Direct Investment Fund Kirill Dmitriev.

Participants discussed the influence of geopolitical factors on the state of the energy market, the possibilities of adaptation to new conditions, and current trends in this area.

The Deputy Prime Minister noted that energy consumption in the world is growing. The reasons for this are electrification, data processing centers, the use of modern computing technologies, and artificial intelligence. All these industries require energy. “Currently, the global energy sector is experiencing stress from the supply side in the market. The closure of the Strait of Hormuz, damage to infrastructure strongly affects the situation. According to estimates, about 12 million barrels of oil will not reach the market – this is about 10% of global demand.”These circumstances are shaping new trends from the consumers’ side: logistical routes are changing, prices are rising, which in turn affects the global economy as a whole: production, food security, housing and communal services. Most likely, such tectonic changes will lead to the search for new logistical routes, ways to transport energy resources, as well as the search for alternative sources,” noted Alexander Novak.

Abdel Aziz bin Salman Al Saud emphasized that Russia has been and remains the main producer of energy resources. “Together we are looking for tools and opportunities that will allow our countries to develop friendly relations. In the coming years, the situation will improve, and relations between Russia and Saudi Arabia will only strengthen,” said Abdel Aziz bin Salman Al Saud.

Speaking about the importance of OPEC+ operations in the context of global energy market turbulence, Haytham al-Ghais noted the key stabilizing role of Russia and the Kingdom of Saudi Arabia. “It is always important for us to think about the long-term process. Oil consumption will grow, the consumption peak is still ahead. This industry requires investments and planning, and it is necessary to prepare in advance for the demand we will see. Investments should not be stopped,” Haytham al-Ghais said.

According to Alexander Dyukov, investments made in the industry over the past 25 years have allowed the creation of a strong resource base, efficient oil refining capacities, and a modern transport infrastructure. “An important and high level of our technological development. These strengths allow us to operate successfully even under conditions of sanctions and restrictions,” noted Alexander Dyukov.

Philip Mshelbila noted the complex situation with gas due to the closure of the Hormuz Strait. “We see a very serious reduction in gas supplies. This has negative consequences for all sectors of the economy. It is necessary to restructure our entire energy system based on the real state of affairs. We must understand how crises affect industry, the economy as a whole, and how long they will continue. All these factors will help to outline the picture of future development,” said Philip Mshelbila.

Kirill Dmitriev noted that to continue active investments in the industry for its development, it is necessary to understand the significance of an instrument like OPEC+. “It is precisely OPEC+ that allowed attracting funds into the industry. Partnership actions within the framework of the agreement are the basis for investment inflow,” emphasized Kirill Dmitriev, noting that Russia plays a key role in the diversification of energy in the world.

Karim Badawi said that cooperation and partnership are indispensable for ensuring energy security. “Products produced by the oil industry influence the improvement of people’s quality of life in many countries. Therefore, we must both increase the efficiency of production in the oil sector and develop the supporting infrastructure. Work in this area will raise people’s living standards. Cooperation between different countries is important for exchanging best practices, collaboration to seek greater energy efficiency,” noted Karim Badawi.

Dubravka Djedovic said that Serbia pays great attention to the diversification of energy resources. “We try to be more adaptive in order to gradually develop the economy. Increasing the size of investments in the energy sector, using new sources of electric power, increasing reserves – all this will help to withstand shocks that affect the economy,” said Dubravka Djedovic.

Also, on the sidelines of the SPIEF, Alexander Novak held a bilateral meeting with the co-chairman of the Joint Russian-Saudi Intergovernmental Commission, the Minister of Energy of Saudi Arabia, Prince Abdulaziz bin Salman Al Saud. The parties discussed prospects for cooperation in various sectors including fuel and energy complex, financial and banking, and trade and economic spheres.

The delegation of the Kingdom of Saudi Arabia, which this year is the guest country of the forum, presented the exhibition pavilion “Soul of Russia.” The space features more than 50 works by contemporary authors and Russian brands — from interior items, textiles, and tableware to art objects, inclusive theaters, and regional creative clusters.

In the framework of the meeting of the Russian-Saudi Business Council, dedicated to the 100th anniversary of the establishment of diplomatic relations between the two countries, Alexander Novak noted that Russia and Saudi Arabia are united by adherence to a fair, multipolar world order, in which the interests of every nation are respected and the right to independently choose its own path is acknowledged.

“The main strength of our relations is a confidential dialogue at the highest level. Regular contacts between the heads of our states set the pace for all joint work, and the agreements reached at the highest level we methodically implement into specific actions. We support each other on the international stage and value this political trust as one of the most precious assets of our relations,” noted the Deputy Prime Minister.

As a result of the meeting of the council, the parties signed more than 30 documents and agreements.

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