A socially oriented non-financial development institution and a major organizer of international conventions, congress, exhibitions, business, social and sporting, public, and cultural events.

The Roscongress Foundation is a socially oriented non-financial development institution and a major organizer of international conventions; exhibitions; and business, public, sporting, and cultural events. It was established in pursuance of a decision by the President of the Russian Federation.

The Foundation was established in 2007 with the aim of facilitating the development of Russia’s economic potential, promoting its national interests, and strengthening the country’s image. One of the roles of the Foundation is to comprehensively evaluate, analyse, and cover issues on the Russian and global economic agendas. It also offers administrative services, provides promotional support for business projects and attracting investment, and helps foster social entrepreneurship and charitable initiatives.

Each year, the Foundation’s events draw participants from 208 countries and territories, with more than 15,000 media representatives working on-site at Roscongress’ various venues. The Foundation benefits from analytical and professional expertise provided by 5000 people working in Russia and abroad. In addition, it works in close cooperation with 160 economic partners; industrialists’ and entrepreneurs’ unions; and financial, trade, and business associations from 75 countries worldwide.

The Roscongress Foundation has Telegram channels in Russian (t.me/Roscongress), English (t.me/RoscongressDirect), and Spanish (t.me/RoscongressEsp). Official website and Information and Analytical System of the Roscongress Foundation: roscongress.org.

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Increasing Russia’s Return on Gas and Oil
2 September 2021
10:00—11:30
KEY CONCLUSIONS
There is a future for fuel gas from an environmental perspective

There is a certain view that gas has good prospects as a fuel. Even despite the climate agenda, the potential for Russian export projects looks very promising at the moment — Grigory Vygon, Managing Director, VYGON Consulting.

We recognize that we have a good window of opportunity over the next 20–25 years, when gas will be one of the key transitional fuels under the climate and environmental agenda. This concerns not only exports of gas or its use at thermal power stations, but also increased added value — Pavel Sorokin, Deputy Minister of Energy of the Russian Federation.

The significant potential for gas utilization has been acknowledged, but I will offer just a couple of figures. The use of LNG as a motor fuel allows consumers to save around 30–45% in costs. Furthermore, using LNG reduces carbon dioxide emissions from fuel by 25% — Eduard Gudkov, Deputy Chairman of the Management Board, NOVATEK.

ISSUES
Low levels of gasification in the Far East and a lack of infrastructure to support the use of liquefied natural gas

The level of gasification in Russia stands at 71%, but I would also like to note that, according to various estimates, the level of gasification in the Far East is between 19 and 24%. Five out of eleven regions in the Far East do not have pipeline gas. Coal generation accounts for 70% of the energy mix for heat generation in the Far East, and we are all aware of the issues arising from this — Gadzhimagomed Huseynov, First Deputy Minister of the Russian Federation for the Development of the Far East and the Arctic.

The foundations for the development of gas supply and gasification in the Far East are now in place, with the creation of a backbone of main gas pipelines. Full-scale gasification in the Far East began in 2008, but a lot of work clearly remains to be done in order to accelerate gasification in the Far Eastern regions over the next ten years — Vitaly Markelov, Deputy Chairman of the Management Committee, Member of the Board of Directors, Gazprom.

We are looking at the issue with Gazprom and are already taking the first steps towards using LNG as well, but there is still the issue of infrastructure. Very expensive equipment, gas-handling facilities for the network, regasification and storage are all needed. We also need to change the boilers in the heating plants and create an entirely new infrastructure — Pyotr Pak, Deputy Chairman of the Government of the Amur Region.

There aren’t enough financing instruments for the development of high-cost projects

I would like to draw attention to the new challenges now facing the industry in addition to the problems already encountered. What my colleagues have been discussing is the lack of affordable project financing. I am talking specifically about project-based financing, rather than lending to subsidiaries of major companies, which is always simpler. The lack of qualified personnel is another issue — Nikolay Sabitov, General Director, Himproekt.

We need more projects and more investment in this area. Nevertheless, we are faced with the question of where the funding will come from, since we cannot endlessly burden the finances of existing companies with debt in order to develop these projects. On the other hand, all the projects are very capital-intensive and long-term — Andrey Zelenskiy, Chief Managing Director, VEB.RF.

SOLUTIONS
State support for business is needed when it comes to implementing large projects, including export-oriented projects

We will be able to deal with our gasification objectives through the close interaction of federal and regional authorities at all levels and, of course, Gazprom — Vitaly Markelov, Deputy Chairman of the Management Committee, Member of the Board of Directors, Gazprom.

The infrastructure costs required in order to deliver this gas – the wet gas, the components, all the valuable fractions, and then the finished product for export – are considerable. The state should therefore work alongside business to reduce costs as far as possible — Pavel Sorokin, Deputy Minister of Energy of the Russian Federation.

It should be acknowledged that the economic benefits of gas sector projects to all participants are achieved in part through mutual interaction

It is vital that all marginal revenue generated from mining to processing is distributed fairly among participants throughout this value chain. If we can identify balanced solutions, then processing will be a priority for us — Gadzhimagomed Huseynov, First Deputy Minister of the Russian Federation for the Development of the Far East and the Arctic.

It is also hugely important that we make use of all the reserves that are available to us in this country. We understand that Gazprom has major deposits that are being monetized as a priority. Eastern Siberia is home to a large number of reserves of independent gas producers… All of this must be accompanied by a fair tariff policy, and all activity must be economically sound for all participants in the chain — Pavel Sorokin, Deputy Minister of Energy of the Russian Federation.

Distribution among the upstream supplier involved in extraction, the midstream partner who prepares gas for transportation and extracts the fractions that can be processed, and then the downstream partner who produces the end products – this economic distribution cannot be achieved entirely through regulatory means. It is built on the basis of mutual interest — Dmitry Konov, Chairman of the Management Board, SIBUR Holding.

The material was prepared by the Russian news agency TASS