MOSCOW, Nov 25 (Reuters) – Igor Sechin, head of Russia’s largest oil producer Rosneft, warned on Tuesday that Western sanctions targeting both Russia and China could lead to a severe economic downturn in the United States, Europe, and allied nations. Speaking at the Russian-Chinese Energy Business Forum in Beijing, Sechin argued that restrictive measures imposed by Western governments have disrupted global trade dynamics and are now backfiring on their own economies.
Since Russia’s annexation of Crimea in 2014, Western nations have introduced multiple rounds of economic penalties. These intensified significantly after Moscow’s military actions in Ukraine in February 2022, resulting in what Western officials describe as the most extensive sanctions ever applied to a major economy.
Sechin emphasized that consumers in Western countries are already experiencing the consequences, particularly through elevated energy costs. He stated that such financial strain could weaken economic stability across Europe and North America. “The persistent use of punitive measures against Russia and China will inevitably result in another crisis within Western economies,” he said, adding that not all policymakers fully grasp the risks involved.
Russia, which holds the world’s largest natural gas reserves and ranks second in oil exports, has seen its access to the European Union market severely curtailed. Despite this, President Vladimir Putin has maintained that Moscow will continue pursuing its strategic objectives without yielding to external pressure.
Sechin noted that both Russia and China have faced prolonged external constraints aimed at reducing their influence in global markets. However, he claimed these efforts have failed over the past decade. He highlighted a key competitive edge: electricity prices in Russia and China are approximately half those in the U.S. and between three to four times lower than in the EU.
According to Sechin, rising power costs in Western nations could force increases in both public and private expenditures, potentially leading to social and economic instability. Quoting Sun Tzu, he remarked that tactical actions lacking long-term strategic vision are ultimately futile.
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Russia’s Sechin says the West could face economic crisis due to sanctions
MOSCOW, Nov 25 (Reuters) – Igor Sechin, one of the most influential men in Russia ‘s energy sector, said on Tuesday that sanctions imposed by the United States, European powers and their allies on Russia and China will trigger an economic crisis in the West. n nThe West has slapped waves of sanctions on Russia since it annexed Crimea from Ukraine in 2014 and introduced what it says are the toughest ever sanctions imposed on a major economy after Russia sent troops into Ukraine in February 2022. n nSign up here. n nChina has accused the United States and its allies of undermining the rules-based multilateral trading system with repeated use of discriminatory policies, reciprocal tariffs, and unilateral sanctions that contravene WTO commitments. n nSpeaking at the Russian-Chinese Energy Business Forum (RCEBF) in Beijing, Sechin, who heads Rosneft, Russia ‘s biggest oil company, said the consumers in the West are already paying a high price for energy that would sap the West ‘s strength. n n”The West ‘s continued aggressive policy of sanctions against both Russia and China will undoubtedly bring about another economic crisis in Western countries,” Sechin said. “Not all Western politicians realise the risks they face.” n nRussia, the holder of world ‘s largest natural gas reserves and second-largest exporter of oil, has already effectively lost the European Union ‘s market, once its largest source of revenues from oil and gas sales. n nPresident Vladimir Putin has said that Russia will not succumb to the pressure and will pursue its policies as it sees fit. n n”Let me remind you that, like China, Russia has been under increasing external pressure for many years,” Sechin said. “The primary goal of this pressure is to push our country out of the global market. The experience of the last ten years has shown that these attempts are doomed to failure.” n nSechin said that Russia and China had a competitive advantage with lower prices for electricity than the West. n nHe said the cost of electricity in Russia and China was two times lower than in the United States and three to four times lower than in the European Union. n nSechin said the high prices for power in the West could trigger a sharp increase in state spending and household spending in the West which be at risk of upheaval. n nHe quoted Sun Tzu: “Tactics without strategy is just vanity before defeat,” Sechin said. n nReporting by Vladimir Soldatkin; editing by Guy Faulconbridge