Competition in global energy markets is cut-throat with major market players knowing each other for a long time. There is rigid pricing policy and significant competition for consumer attention. Every supplier has its own markets. As for Russia, it has the near-monopoly over Central European gas supplies. Taking into account the long-term cooperation as well as up and running infrastructure between the EU and Russia, hardly anyone, even the U.S., would be able to compete with Russia in Europe’s gas market in the near future. Russia’s President Vladimir Putin reiterated this addressing to the U.S. energy suppliers.
Speaking to reporters, the president gave reasons why Russia is unlikely to have any problems with Russian gas exports to Europe. "Major investments will be needed, as it is necessary to build the essential infrastructure on both sides of the Atlantic," Putin said. He also noted that gas prices in Asia are 1.6 times higher than in Europe, so this market is far more attractive.
"It is as plain as daylight that US LNG producers are better off dealing with the bonus-bearing Asian market. No one will operate at a loss. More than that, everyone and you in the first place aim at making profit, which is absolutely logical in the market economy," Putin continued.
Thus, while America makes attempts to cultivate the European gas market, Russia would get into the Asian one having ready infrastructure in the EU under its belt. In case the Russian Federation crosses the Asian finish line first, the country could be at the forefront of global energy systems transformation.
