By Kestér Kenn Klomegâh
At the plenary session of the Russian Energy Week international forum on September 26, Russian President Vladimir Putin categorically reiterated Russia’s role as a stabilizing force in the global energy market, and would continue to be a dependable supplier of energy products to the global market. And as European and North American economies continue to struggle mightily amid their own sanctions, and further as new multipolar models of developing the energy sector are already being shaped worldwide, it is BRICS countries that will become the economic powerhouses of the 21st century, Putin noted in his speech. That said, he stressed that by introducing sanctions, the West had only hastened the development of alternative solutions in Russia – from managing logistics to international transactions.
It was not the first time that Putin underlined Russia’s leading position on the world’s energy market. Putin’s primary aspiration has been focused on maintaining this position, shouldering and flexing muscles with competing and rival producers in the world. Currently, one more major pipeline, the Power of Siberia, connects Russia to China, while the construction of additional pipelines, such as Power of Siberia 2 and 3, are seriously taking shapes, paving pathways into the future. That will definitely control the Asian market. According to the World Bank, Russia holds the world’s largest natural gas reserves, the second largest coal reserves, and the eighth largest oil reserves.
Putin believes that the growth of energy especially oil and gas will shift to BRICS countries, pointed to BRICS countries such as the United Arab Emirates and Saudi Arabia, and Africa in the Global South. This group primarily includes countries in South and Southeast Asia, as well as Africa, including Equatorial Guinea, whose president he invited to showcase at the forum. Over the past two and a half years, Russian companies have successfully redirected their exports of oil, petroleum products, and coal. Previously, the Asia-Pacific region accounted for about 39 percent of energy exports, but by the end of last year, its share exceeded 60 percent.
In general, friendly countries account for over 90 percent of Russia’s energy exports today. At the same time, in physical terms, with the exception of natural gas (it is also clear to experts why), they have practically remained at the 2021 level. Russia is expanding the geography and scale of its energy cooperation. New routes are being created to connect to fast-growing receptive markets, including the countries of the EAEU, the CIS, and southern Eurasia. Gas exports through the Power of Siberia pipeline are increasing, and LNG exports continue to grow. Russia plans sustainable energy projects in the Arctic region.
Nevertheless, guided largely both by geopolitical developments and envisioned economic profit, Moscow hosted the 7th Russian Energy Week in late September, aiming at attracting foreign participants to assess their energy production capabilities, probing their untapped energy resources and to exchange notes over the current market conditions. According to the information leaflets publicly distributed, the main theme of Russian Energy Week 2024 was energy cooperation in a multipolar world.
As significant part of the geopolitics and first-class display of diplomatic symbolism for Russia-Africa relations, President of Equatorial Guinea Teodoro Obiang Nguema Mbasogo was invited as the guest speaker. Of course, it offered the chance, at least, to hold a meeting focused on bilateral cooperation and the development of Russia’s ties with Central African countries, and pointed to the fact that it is during Equatorial Guinea’s presidency of the Economic Community of Central African States (ECCAS).
Teodoro Obiang Nguema Mbasogo, during his speech, traditionally stressed Russia’s role and position on global energy markets. He also outlined the main objectives for the Africa’s domestic energy sector to be supported by conducting feasibility studies, exploration and production of oil and gas for the global market. In his opinion, the a number of African countries still have the “great potential investment opportunities” for Russian investors and other external players, especially in the context of this natural resource extraction.
Equatorial Guinean leader, Teodoro Obiang Nguema Mbasogo, completely forgot that potential African producers are operating in a rivalry and competitive world. Russia’s support to Africa’s energy sector could, most possibly, to gatekeep and control the flow of this resources into the global market. Russia’s interests about possible participation in the oil and gas related projects is perceived by some experts as a bid to control the flow of oil and gas from Africa into Europe.
Popular opinion now is that potential African producers can take advantage to attract investments required to build infrastructure that would enable them to expand exploration, production and exportation to meet the anticipated increase in demand in Europe. Some experts still believe that Europe can look to Africa as preferred energy supplier. But, the most effective way requires the right to determine their energy policy, lay the groundwork for long-term, substantial and transparent collaboration. That’s a real opportunity for Africa at this point in time, with the rapidly changing geopolitical conditions in the world.
Equatorial Guinean leader, however, explained that Africa exists in an era of major changes and challenges. But Equatorial Guinea, rich in natural resources, such as oil and gas, is determined to deepen energy cooperation with Russia, and is open to forging strategic alliances with willing other external partners. Such partnerships should not be limited to the production of resources but should include knowledge transfer, technological training, and the promotion of modern energy infrastructure development.
Equatorial Guinea believes that energy cooperation should be guided by a fundamental principle: to ensure the stability of energy markets, protecting the most vulnerable segments of the population from market volatility. Energy should not be a weapon, but as a means to achieve common prosperity. The collective responsibility is to ensure that the least developed countries are safely protected from fluctuations in energy prices and are not excluded from the benefits of energy and advanced technology.
The Organization of the Petroleum Exporting Countries (OPEC) coordinates the petroleum policies of its member countries and ensures the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers in the petroleum industry. regulates all activities and operations of producers. But for Putin, Russia has been fulfilling its obligations to supply energy resources to the world market and plays a stabilizing role within it, participating in such authoritative formats as OPEC Plus and the Gas Exporting Countries Forum.
Many oil-producing African countries face multiple hurdles in the energy market. For Russia, first prerequisite tradition has been to sign bilateral agreements after negotiating for more favorable terms for its companies such as Zarubezhneft, Lukoil, Zakneftegazstroy-Prometey, Gazprom and so forth. Records show that Russia currently has bilateral agreements with 14 African countries. The Russian companies have shuttled forth and back these African countries such as Angola, Nigeria, Libya, Sierra Leone, Sudan, Uganda and the rest. Angola recently left OPEC, the cartel of oil-producing countries, after a dispute over quotas. For instance in April 2024, the Republic of Congo has become the fourth largest oil producer in the Gulf of Guinea, providing the country with a high degree of potential prosperity despite its internal ethnic conflicts and economic disparity. The State Oil Company of Azerbaijan (SOCAR) and the National Oil Company of the Congo signed an agreement, both will jointly on specified conditions develop and expand Congolaise de Raffinage oil refinery. Congolaise de Raffinage specializes in the processing of light oil, its website says. The refinery’s capacity is 1 million tonnes of oil per year. Production started in 1982.
For decades, Russia has been looking for effective ways to promote multifaceted ties and new strategies for cooperation in energy, oil and gas, trade and industry in Africa. But so far, Russia’s investment efforts in the region have been limited. Russia is very cautious about making financial commitments in Africa. Russian companies currently have a weak presence in Africa. There is no stimulus for efforts to localize the production of equipment and strengthen technological partnerships in the energy sector. Russia, with contentiousness, claims the leading position as a supplier and is now rapidly diversifying its products at discounted prices to the Asian market. As far as energy is a corporate business, Russia looks further to earn pretty revenue by exporting its energy to Africa.
With the emerging new economic order characterized by competition and rivalry, and an additional fact that Russia already has thousands of decade-old undelivered pledges and several bilateral agreements signed which are yet to be implemented with individual countries in the continent, it is simply logical that Africans should not expect much in this oil and gas (energy) sector from the Russian Federation. With a deep insight into Africa’s immense potential as a vibrant continent, home to 1.4 billion people, and yet the leaders do not perceive the continent as an energy market at all. Despite its natural wealth, Africa starkly remains a continent with vast untapped potential and persistent poverty. It is about time for Africa to leverage its collective strengths and tackle its energy resources, very essential ingredient for necessary development sustainability and economic prosperity.
Under the theme “Energy Cooperation in a Multipolar World” – which was considered extremely important and topical, the 7th Russian Energy Week gathered more than 4,000 participants from over 50 countries. Modern energy is regarded as one of the key sectors enabling global development. Its smooth operation based on transparent and predictable rules, when deposits are developed and resources are extracted, processed and supplied to the market without interruption, creates a solid foundation for economic growth, social progress, and improvement of the people’s living standards.
