Putin Worried About Possible Aftermath Of European Energy Crisis

Russia is not interested in the endless growth of energy prices, including gas, but this takes place beyond Moscow’s control, Vladimir Putin said at the meeting with Cabinet members on Wednesday.

"If there is a decline in consumption - and such situation eventually leads to reduced consumption, it will also affect our producing companies, including Gazprom," Putin said. "That is why we are not interested in the endless increase of prices for energy resources, including gas. nevertheless, developments are taking place, beyond our control," Putin said.

"These are largely artificial things made by our colleagues, including in Europe, but certain consequences can also be for us," Putin noted.

"As soon as prices for mineral fertilizers produced using gas start growing - and they are rising already, since plants are shutting down - our producers will be tempted to sell everything at high prices," the head of state said. "We know this from recent developments in certain branches. therefore, it will not be merely needed to analyze developments to occur in the near future but also present a package of measures that will support the interests of our agricultural producers and limit the food price hike," Putin said.

Such a package of measures should mitigate adverse consequences that may occur on global markets and affect the Russian economy in one way or another," he added.

"What I am worried about and, as far as I understand the Russian government is worried about, is the potential consequences [of the crisis on the energy market], including the measures to support the population proposed by some of our colleagues in Europe," he said, adding that such measures might lead to many problems in various areas.

"Right, people should be supported, of course," Putin contended. meanwhile, he noted that "some European countries are now planning to make decisions on supporting households." "Where will this lead to in real terms ? It won’t lead to people cutting back [energy resources] volumes of consumption, meanwhile there will be a further reduction of industrial consumption, mainly in energy-intensive sectors," the president explained, mentioning the metals industry and the production of ammonia fertilizers among them.

"But this will have its own further consequences that will affect people, and prices for other goods will eventually increase," he noted. "This way of supporting citizens, which is projected (in European countries), is plain to see, but ultimately, we will witness that those are most likely decisions prompted by the current domestic political environment, meaning particularly the pre-election situations in certain European countries," Putin explained.

"But it will eventually affect the people anyways. if the metal industry consumes less [energy resources] prices for those goods will rise, pushing prices in the whole chain further up," the Russian head of state said. "just like [prices] on the food markets will climb, food [prices] will rise in the event of a deficit and underinvestment in appropriate fertilizers that are produced using natural gas," he concluded.