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Сорокин Павел
Pavel Sorokin
Deputy Minister of Energy of the Russian Federation
Quotes
06.06.2019
SPIEF 2019
From Raw Materials to Services: The Digital and Technological Transformation of Oil and Gas Companies
It is an important and relevant topic, especially that digitalization is the Forum’s most dicussed one if you add up all the time speakers used to address it
06.06.2019
SPIEF 2019
From Raw Materials to Services: The Digital and Technological Transformation of Oil and Gas Companies
The key topic is human resources. They determine success in every respect
06.06.2019
SPIEF 2019
From Raw Materials to Services: The Digital and Technological Transformation of Oil and Gas Companies
Overall energy consumption will grow up to 2035, and the increment will reach 30%, but renewable sources will take a large share
06.06.2019
SPIEF 2019
From Raw Materials to Services: The Digital and Technological Transformation of Oil and Gas Companies
The oil industry has always been among leaders of new technologies introduction, not just becasue it employs special people or scientists, but because it has been an industry that had to explore new deposits and enter new markets. The need called for new technologies
06.06.2019
SPIEF 2019
From Raw Materials to Services: The Digital and Technological Transformation of Oil and Gas Companies
The most important thing here is the role of the government. We need to help with the infrastructure, with removing administrative barriers and creating an environment for technological development, i.e. a certain ecosystem
06.06.2019
SPIEF 2019
From Raw Materials to Services: The Digital and Technological Transformation of Oil and Gas Companies
Efficient digitalization is not possible without cooperation among market players. The role of the government is truly important here – it needs to come up with incentives for this type of cooperation
06.06.2019
SPIEF 2019
Oil and Gas Industry. Regulatory Activity and Prospects for Development of Oil and Gas Industry in Russia and China
There is a number of challenges that we have to fight: overcoming long distances, climate, there is room for improvement in energy efficiency, and of course, the growing competition both among countries that supply natural resources and among fuels. The latter means it is the market share competition in energy generation against renewable energy sources and among coal, gas and oil. It is important to raise efficiency to keep our deposits attractive
06.06.2019
SPIEF 2019
Oil and Gas Industry. Regulatory Activity and Prospects for Development of Oil and Gas Industry in Russia and China
The Government provided preferences to exhausted, remote or difficult deposits in East Siberia, in the Arctic territories. The share of extraction with preferences is growing. It tells us that the Government sees the problems and tries to resolve them together with investors and businesses
06.06.2019
SPIEF 2019
Oil and Gas Industry. Regulatory Activity and Prospects for Development of Oil and Gas Industry in Russia and China
Starting from this year, there is a tax system experiment that will factor in actual project cash flow: not just apply taxes to the revenue but look into the economic factor of the projects. The add-on yield tax can significantly raise profitability for deposits with high costs and result in higher output in those deposits, by up to 40% over the project’s life cycle
06.06.2019
SPIEF 2019
Oil and Gas Industry. Regulatory Activity and Prospects for Development of Oil and Gas Industry in Russia and China
Russia is open for partnership and developing potential for Russia–China cooperation to the full is truly important for us. This ranks among the highest potentials for mutual investment and interest in the world
06.06.2019
SPIEF 2019
Digital Subsoil Use
When it come digitalization, we would like to fit in. But can we actually do it? It a big question. It is important not to get carried away here
09.04.2019
International Arctic Forum 2019
Arctic Shelf Development: The Potential and the Risks
An analysis of global practice is currently under way. We expect to subsequently use this to simplify procedures and substantially reduce red tape
09.04.2019
International Arctic Forum 2019
Arctic Shelf Development: The Potential and the Risks
The pressure from sanctions, which impose specific restrictions on technology, has meant that time frames for developing reserves have shifted somewhat to the right
09.04.2019
International Arctic Forum 2019
Arctic Shelf Development: The Potential and the Risks
The fiscal system is a crucial component. It needs to be stable and offer sufficient profitability [regarding the development of deposits – ed.]
09.04.2019
International Arctic Forum 2019
Arctic Shelf Development: The Potential and the Risks
Work is continuing apace on this issue [developing technology under current sanctions – ed.]. <…> We need to find partners and come up with ways to reduce costs
15.02.2019
RIF 2019
Chemistry for Life
Support measures should be systematic. They should provide every investor who wants to invest in it with a picture for 15–17 years ahead and guarantee that they will be able to get back the invested money due to high EBITDA margin, which, for example, will be partially secured by reverse excise tax
15.02.2019
RIF 2019
Chemistry for Life
How can you make people sell in the domestic market? You can force them to, or you can provide economic incentives. To avoid the practice of dictating terms, we, in co-operation with the Ministry of Finance, introduced a damping mechanism — reverse excise tax. This element has been in place for a month so far. The difference between the export alternative and an estimated market price, which has to be suitable for everyone, is compensated from excess budget returns that come from oil price growth. A part of this difference is compensated — a half in nominal terms and 70–80% in real terms
15.02.2019
RIF 2019
Social mobility as a tool for economic growth and global competitiveness
For social mobility to work, the system should be ready to dismiss people, and not to dismiss them for further promotion or horizontal transfers, as is often the case here. It is a standard practice for the system in a normal healthy society
15.02.2019
RIF 2019
Social mobility as a tool for economic growth and global competitiveness
Social mobility mechanisms were aimed at making people believe in sincerity and opportunities. This is what makes the process systematic. The worst thing is when 90% of people are not ready to use social mobility. We should focus on this area
04.10.2018
Russian Energy Week 2018
The Development of Pricing on the International Oil Market: New Benchmarks, Currencies and Settlement Technologies
In the past year and a half, a lot of work has been carried out: the budget rule and the fact that foreign currency is withdrawn from the market to the reserve fund have allowed us to stabilize the exchange rate and inflation. These are two factors that give investors confidence [...] When we market the URALS product, it should not be an effort just by individual government agencies or companies. It should be a collective effort. The Ministry of Energy is ready to provide a platform to unite regulators, the exchange, and consumers for joint efforts in futures marketing
04.10.2018
Russian Energy Week 2018
The Development of Pricing on the International Oil Market: New Benchmarks, Currencies and Settlement Technologies
We have a gigantic physical market, a resource base, and potential. So it’s totally logical to ask — if the resources are ours, the suppliers are ours, the transportation are ours, and the customers ours, why is this all being traded on other exchanges? Why are other indicators being used and what should we do about it? If we want to attract consumers, we need to provide them with clear conditions and outline the benefits that they will receive. In today’s world, the benefit is a reduction in the degree of manipulation and the creation of an alternative to well-established indicators
04.10.2018
Russian Energy Week 2018
The Development of Pricing on the International Oil Market: New Benchmarks, Currencies and Settlement Technologies
Stability is one of the main factors in the hands of the government, the state, and business that can be influenced. We complain about external factors, and they are, indeed, quite often fundamental, but sometimes we forget about what we can change. This concerns taxation and regulatory conditions, which are important for launching new products and new projects
04.10.2018
Russian Energy Week 2018
The Energy Potential of the Arctic: Implementing Projects and Developing Logistics
This isn’t just a transport corridor for transporting oil and gas. Once we are able to meet the goals set by the President and provide year-round navigation along this route, it will be a new transport route that can reduce the route from Asia to Europe by 30%. For a ship, that’s an eternity. In the modern world, there have been no such breakthroughs for a hundred years
03.10.2018
Russian Energy Week 2018
Identifying a Strategy to Succeed on the Global Petrochemical Market
If the global economy growth rate does not fall significantly below 3%, which is not in the predictions yet, we believe that the demand for petrochemistry in the foreseeable future will increase at the rate of 5.5% to 6.5% per year over the next 20 years
03.10.2018
Russian Energy Week 2018
Identifying a Strategy to Succeed on the Global Petrochemical Market
We have relatively small production capacity. We now produce approximately 10 million tons in petrochemistry, most of it is consumed in the domestic market, and we import some things that are not on the list of what we produce. Exports amount to USD 3.2 billion. This number does not impress, especially compared to other fuel and energy economy sectors
03.10.2018
Russian Energy Week 2018
Identifying a Strategy to Succeed on the Global Petrochemical Market
At the Ministry of Energy, we have long called for — and we will continue to do so, and we see substantial support of our thesis — ensuring that the tax regulation does not deteriorate for capital-intensive industries with long investment cycle, such as petrochemicals, oil and gas, over the period of 10 to 15 years. Otherwise, nobody is going to invest in projects with a return of 12–14%, if there is a possibility, even a small chance, that in six or nine months the tax regulation changes. Unfortunately, this happened quite often in the past
25.05.2018
SPIEF 2018
The Place for Traditional Players in the Digital Economy
Traditional and non-traditional industries should coexist. There should not be an invention for the sake of invention or work for the sake of work. Everything should be headed towards producing a result. <...>To remain competitive in the market, it is necessary to introduce new technologies and keep up with the times
24.05.2018
SPIEF 2018
Infrastructure of the Future: How should Business and the Authorities Adapt to the New Environment?
Most of charging stations <…> are entirely unprofitable
24.05.2018
SPIEF 2018
Infrastructure of the Future: How should Business and the Authorities Adapt to the New Environment?
Oil industry <…> may become a source of significant capital for investment for the digital segment development <...> and most importantly, the oil industry needs it
24.05.2018
SPIEF 2018
Infrastructure of the Future: How should Business and the Authorities Adapt to the New Environment?
Those contractors who work with oil companies and create this environment for them, they don’t work with oil companies alone. <...> In other words, this contractor can work with Sberbank but the oil company gave him a basic anchor contract that allowed this company to develop and enter the market
24.05.2018
SPIEF 2018
Infrastructure of the Future: How should Business and the Authorities Adapt to the New Environment?
It is impossible to instil digitalization, any new technology is not going to work if it is forced. We need to create conditions for the business itself to be interested in this. As for energy, there are tax incentives