Favorable climate, sensible policy crucial for energy investment — Khristenko
RIA Novosti, Mar 16
MOSCOW, March 16 (RIA Novosti) — Russia’s industry and energy minister said Thursday that massive investment in global energy projects were only possible in a favorable investment climate and political stability.
“Securing sufficient investment in the development of the global energy sector is only possible in a favorable investment climate and given political stability in countries that produce and consume energy resources, as well as in transit states,” Viktor Khristenko said in opening remarks to a meeting of G8 energy ministers in Moscow.
Investment incentives included good legislation, clear tax rules, respect for contracts, reliable dispute-settlement procedure, and measures to reduce red tape, he said.
Khristenko cited figures from the International Energy Agency, set up to advance energy and technology cooperation, which said a total of $17 trillion should be invested in the energy sector before 2030. He said much of that amount should go to finance production, transportation, and refinement. “We should join efforts to secure considerable investments and make proper use of them,” Khristenko said.
He also said energy projects had to be more viable economically and financially to lower the risk of breaks in power supply, and proposed various insurance and financial risk unbundling schemes to this end.