7th GECF Summit- Exclusive Interview with Russian Energy Minister Nikolai Shulginov by El Moudjahid: “Russia Seeks a Reasonable Energy Balance”

BY: Dr. Hana Saada

ALGIERS- The Russian Minister of Energy sheds light on the context and challenges surrounding the 7th Summit of the Gas Exporting Countries Forum (GECF), which commences today in Algiers.

In this exclusive interview with El Moudjahid, he emphasizes the constraints facing the gas market and underscores the importance, openness, and non-discrimination of global natural gas markets within the “Algiers Declaration.”

Furthermore, he stresses that Russia has never used energy resources as a means of pressure against other countries. Nikolai Shulginov, a seasoned figure in the energy world, was born on May 18, 1951, in Sablinskoye, in the Aleksandrovsky district of Stavropol Territory.

Nikolai Shulginov, Minister of Energy of the Russian Federation, boasts extensive academic credentials in the energy field. In 1973, he graduated from the Sergo Ordzhonikidze Polytechnic Institute in Novocherkassk with a specialization in power supply for industrial enterprises and cities. From October 1975 to December 1976, he worked as an engineer at the Pyatigorsk branch of the All-Union Design and Research Institute Selenergoproekt. Since July 1998, he has held various positions, including Chief Engineer of the Central Dispatch Service at Stavropolenergo, a subsidiary of RAO UES of Russia, Pyatigorsk.

From July 1998 to September 2002, he served as Deputy Director, then Director of the Territorial Computing Center and Contract for the Federal Wholesale Electricity Market at the Unified Dispatch Administration for the North Caucasus, a branch of RAO UES of Russia, Pyatigorsk. From July 2002 to September 2015, he was Director of Technical Audit at SO UES (former SO-CDU UES).

In March 2004, he was appointed Vice Chairman of the Board of Directors. In 2007, he obtained his Doctorate in Technology from the North Caucasus State Technical University. In February 2009, he became First Vice President of the Board of Directors in Moscow, and from September 2015 to 2020, he served as Chairman of the Board of Directors and CEO of RusHydro in Moscow. On November 10, 2020, he was appointed Minister of Energy of the Russian Federation.

El Moudjahid: You are participating in the 7th Summit of Heads of State and Government of the GECF. What are Russia’s expectations for this important event, which takes place against a backdrop of excessive volatility in global energy markets?

Nikolai Shulginov: Much has changed since the two years when, as head of the Russian delegation, I participated in the 6th GECF Summit in Doha. At that time, we were rebuilding the energy sector after the coronavirus pandemic, combating underinvestment in the oil and gas sector, and addressing other challenges with economic roots.

Today, to these challenges are added artificial political obstacles to the natural development and progress of the energy sector. Unilateral and illegitimate restrictions imposed by several countries have destabilized global energy markets. The “capping” of oil prices, the joint gas purchasing mechanism, and other aggressive actions undermine the principles of free and non-discriminatory markets. The result is negative consequences for the development of the economy and the gas industry of a given country.

In my opinion, this is a short-sighted view. Gas is affordable, reliable, versatile, and environmentally friendly. It can be used to achieve climate neutrality, which is currently in vogue, without imposing financial burdens on the global economy and, ultimately, on consumers.

El Moudjahid: Long-awaited by many producing countries, feared by consumers, but postponed for technical and leadership reasons, it seems, will the Gas OPEC finally see the light of day in Algiers? What is Russia’s position on the idea of ​​forming this “organization”?

Nikolai Shulginov: The GECF does not impose gas production quotas. Our alliance aims to ensure the sovereign rights of member countries over their own natural gas reserves and the ability to independently plan and ensure sustainable and efficient gas development and use for the benefit of their populations. It is also an excellent platform for exchanging experiences, views, and information on key aspects of gas industry development. The Russian Federation remains committed to unity, cohesion, and constructive cooperation among GECF member countries.

El Moudjahid: “The Algiers Declaration,” which will seal the summit’s work, is expected to send a strong message to the energy world. What will this message be, in your opinion?

Nikolai Shulginov: I rely on common sense. I believe the declaration will focus on the importance, openness, and non-discrimination of global natural gas markets. We must not forget the need to counter risks and challenges in the gas sector.

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