Lukoil’s ex-chief warns against EU ban on ‘irreplaceable’ Russian oil

The former head of Russia’s second-largest oil group has warned that a European ban on the country’s crude oil “cannot be replaced” will be the “most negative scenario” for all parties as EU discussions on the embargo intensify.

And Git Alkaprov, who retired as Locale’s chief executive last month after being hit by Western sanctions, told the Financial Times that any move by the EU to cut off Russian oil imports would be a “shock to everyone.”

“By imposing sanctions, Western countries have given a clear signal and declared their position. There is no need to tighten them further,” the billionaire said in his first press interview since retiring.

Alkaprov’s comments come amid heated debates in the EU – which relies on Russia for a quarter of its oil imports – over whether to impose an oil ban that would increase pressure on Moscow but exacerbate Europe’s energy crisis.

European Commission President Ursula von der Lane wants the EU to side with G7 partners including the US, which has imposed sanctions on oil in March. For herself to find alternative fuels.

Alkaprov acknowledged that banning the import of oil means “Russia will have to reduce production, freeze wells, as we did at the beginning of the epidemic in 2020, because it is not possible to divert all European quantities to other markets overnight”.

But he warned that for the EU, “it is impossible to replace an energy exporter as large as Russia, even in the medium term.”

Building a new infrastructure to divert Russian oil now flowing to Europe will take years, Alperov said, especially in an environment where global industry has already lost “hundreds of billions, trillions of dollars” of investment in recent crises.

“Military conflicts can end quickly, while the world’s energy configuration has been determined by decades of investment and hard work by many generations of professionals,” he added. “There is no need to challenge or destroy it.”

Referring to declining energy security and rising prices following Russia’s invasion of Ukraine, he said: “This is not a natural process, like carbon release, nor a short-term consumption crisis like in the Corona plague. It is a very severe energy crisis with long-term negative consequences for all market participants.”

The committee proposed € 2 billion in loans to Hungary and other Central European countries to adapt their infrastructure as part of a € 210 billion RepowerEU program to achieve energy independence from Moscow.

Alkaprov was one of Russia’s most senior oil executives until British and Australian sanctions against him led him to retire from Lukoil after 30 years in charge.

In Azerbaijan, where he worked as an oil man before moving to manage oil fields in Siberia and then to the Soviet Ministry of Petroleum and Gas, Alkaprov founded Lukoil by uniting three of the largest Soviet oil fields in 1991. The company was one of the top three world oil companies in the world. Producers in 1992.

Alkaprov saw this through his privatization in 1993, registration in London and the transition to international reporting standards. The LSE suspended trading in Locoil shares in March.

It maintains 8.5 percent directly or through family trusts or mutual funds. Forbes Estimated his fortune in May at $ 22 billion, down from nearly $ 25 billion last year.

Like other Russian businesses, Lukoil has been hit by various Western marches targeting the Russian economy. The company warned last month that it may have to close refineries because of its reduced ability to sell petroleum products overseas or store them in the country.

Alkaprov was sanctioned for what UK Government Described as enjoying or continuing to support the Russian government. But he insisted that Locoille and her management have no influence on decisions or political processes.

His decision to retire “was made for the company, although I will not hide it, it was sad for me,” he said.

“We see that the sanctions are usually of a chaotic and emotional nature,” he said. “They influence people who do not make political decisions, they have no political influence. Not to mention the factual errors in them, in last names, titles or reasons for sanctions. It does not seem legal at the very least and negates the importance of these steps in the eyes of the public.”

Lukoil’s ex-chief warns against EU ban on ‘irreplaceable’ Russian oil Source link Lukoil’s ex-chief warns against EU ban on ‘irreplaceable’ Russian oil

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