In this interview with Mohamed Fathy from Asharq Business Bloomberg, Dr Carole Nakhle, CEO of Crystol Energy, discusses the short and long term implications of the conflict between Russia and Ukraine on energy markets as well as the Russian economy.
The current rise in energy prices is primarily driven by the geopolitical developments, between Russia and Ukraine even though to date we haven’t seen any supply disruptions. The crisis has just started and it can fold in many ways. One of the unknowns is how will President Putin react to the sanctions imposed by Western powers on Russia. Putin might activate the nuclear option and cutting gas supplies off. The economic reforms introduced in 2014 following the sanctions imposed on the country after the annexation of Crimea have enabled the economy to endure economic sanctions and foregone oil and gas revenues for a while.
However, in the longer term and if sanctions target energy technologies for instance, Russia will struggle to expand its production at a time when competition for market share will intensify. Also, its reputation as a reliable gas supplier might be damaged particularly for Asian customers.
Watch the discussion (in Arabic):
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