startup t.v. dot com. you're watching our t.v. has a recap of the headlines turkey admitted that it's wired to judge shut down yesterday may have been violating syrian air space a position contrasting with previous statements implying it was downed while flying over home territory. a tough choice for ecuador which says it wants a lot of political persecution or bend under pressure in his decision over the requests from the top. whistleblower julian assange for asylum. and egypt's muslim brotherhood brings tens of thousands to to hear the square demanding the delayed presidential run of results now while protesting against the ruling military's hold on power the generals of blame is levers for inciting unrest.

now the energy sector and its role in russia's economy is on the table as elgar nava sits down with maria under hovan from the international energy agency spotlight is up next. so. how again a welcome to spotlight on al green alvin today my guest on the show is somebody who of. the old price is apparently the main trendsetter world because many countries

are pretty much dependent on it and the recent decline of the index below one hundred dollars per barrel has made them feel nervous in russia oil and gas are crucial for two but let a reporter who has recently said the reform of the economy then may his government in order to make it less dependent on hydropower as he spoke as they enter national economic forum held in st petersburg where all the world's economic elites get so is it possible to reduce russian economies dependence on the how will the energy sector develop in the near future i will discuss it with my idea of on that hoover an executive director of the international energy agency who's joining us live from st peter's. memory of under who that is a dutch politician from the conservative christians in a classic appeal party she first became an m.p.

at the beginning of the ninety's was going to be elected twice. during the last decade and she served as the minister of education culture and science and most recently the minister of economic affairs in that position even has worked a lot with the and. sector in september of last year she was elected executive director of the international and that's. how mrs won the moon and thank you for being with us welcome to the show. and well first of all i wanted to ask you about what's happening today on the forum as we know president putin chose to address the leaders of the energy industry at the st petersburg forum you were also present at the session so what impression did putin speech have on the international audience. well i can only give you my own ideas on that of course and. i think what's minnes what president putin said

was very importantly as we all know it's important that some reforms are going to be done in the in russia that's russia needs a lot of investments investments also from for the oil companies. it's also important legal frameworks fiscal frameworks to i've had a pretty to promote these investments and they are necessary so what we are all looking forward to is how all the plans that are now being announced in these days are going to turn into reality president putin has promised quite a number of economic overhaul speaking at the st petersburg international economic forum spotlight. has the details of the then to double the russian davos this time takes place amid food prices which means no deficit freed by jet for russia this year the country has for years been trying to top with its

commodity dependence now when you step in this direction has been announced by vladimir putin a new group stop linking the russian viju to oil prices are going to move the country still further away. from total reliance on oil revenues putin is planning to boost private investment. we must increase investment into the economy to the level of twenty seven percent of g.d.p. by twenty eighteen this is a realistic goal given the fact that now this level stands at twenty. addressing foreign investors putin promised them liberal reforms and participation in privatization of government assets also spoke of giving impetus to the development of russia's stock market sure. i would like to pay special attention to another decision i'm talking about the establishment of a consortium between the russian direct investment fund and

a number of international investment funds the consortium will invest in russian companies planning stock placements on the merged my six r.t.s. exchange vidler putin how this separate meeting with the heads of major companies and he said he welcomed foreign investment in the oil and gas sector in turn he asked for the opportunity for russian companies to participate in investment projects abroad putin said swapping assets and flows of investment would strengthen global and the just security and stability. the the. yesterday in st petersburg asking you have to hear and i have signed an agreement on the shelf for a while at last doesn't mean that i may be satisfied with russia's conditions for the european investors in the russian energy sector. it's very difficult to give an answer to that to that question but of course what we can see

at this moment that there are some quite some contacts between russian companies and between companies in europe between companies everywhere and i think this is very encouraging because it shows that there is an opening. of fresh air and that's what exactly everybody would like to see because let's be honest russia is very very important when it comes down to it and to global energy supply there is no solution without russia russia is the biggest gas producer is the second producer in the world so it would be an illusion to think about. energy demands a growing energy demand worldwide could be met with the outs without russia so what you just mentioned i think is one of the important steps towards that direction. but will a rush ministry of economic development. to me all prize during

the year two thousand and twelve will be somewhere around one hundred dollars a barrel or do you agree with such an estimation one in roughly. of course an estimation is always based on certain assumptions and i don't know what the assumptions are what we can see at this moment that the prices went down today below ninety if you know ninety dollars a barrel eighty nine or eighty eight so that is that is that is really much change when you look into the prices a couple of months ago when we're talking about prices about one hundred twenty five and on the twenty eight dollars a barrel but of course the question is will prices continue to fall and that's why i always tell everybody asks me let's not be complacent because the situation as it is today can change can change quite quickly let me just if you. a couple of

examples one thing is that there is a growing energy demands all over the world especially in emerging countries nothing is going to change that the second is that will have seen in the past few months that is that storage is filled up. just one example dundee united states at this moment to the storage is are can both very well will very well filter they are full of the that there were during the past twenty twenty years and the second the sensing is we still are conflating confronted with a number of outages for instance at this moment about one point two one point three million barrels a day from the opec concert is not being brought to the market well i'll tell now we it was about one hundred million barrels a day but let's have a look at what happens in argentina what additional means there are a lot about one to one hundred thousand million bout a hundred thousand barrels

a day less put on the market because they have problems with their workers so things can change quite quite quickly and that's why i always tell people ok prices are coming down now that's true but don't think take it for granted that prices will continue to fall so coming back to your question. i don't know about you some since that's on the pin the full cost of food that you just mentioned but i think it's always so that there is a certain volatility and crisis but a buck is the oil price of a hundred dollars sustainable for industrial economies to keep growing doesn't this price contribute to a slowdown in growth. the problem is that if prices are on the high level for longer periods and that has been happening now in the past few months

then it's dangerous to the economic recovery of countries and this not only for the countries that are already having a emerged economy and mature economy but it is the same for countries that are in this moment having an emerging economy because they are all confronted with the same high price so it's very important to bear in mind that there is a relation between economic recovery on one hand and the prices of oil on the other hand because oil still is the most important fuel in the global fuel mix. how will the slowdown of global economy especially the economy of the euro zone affect the demand for oil. what we can see now about this stuff indeed the because of the slowdown in the year in the euro zone there is stairs less demand

for instance for fall for gas and also less demand for oil but the question is how fast you are is own can come back on track but it's not only about the euro zone we're talking it's also about the others and i mentioned the emerging countries because that's where the gross the gross and achieve the months will be will be the most significant and of course we always we always use the before costs of the i.m.f. so what we see for instance now if we if we take the full cost of i.m.f. or three point two zero we have a lower forecast that immediately effects the need to months for oil. you're absolutely right of course not only the euro zone but other countries especially the eight. countries are very important for oil producing countries such as russia so i mean china first of all do you think that the that the oil dumont and these

asian economies will remain stable despite the slowdown in the west. they have these countries you just mentioned like china and all the other asian countries which are developing quite fast what they have been doing until now is also preparing themselves for an eventual risk when there is the wendi iranian scientists will come into full swing. they are buying oil and they will see to it that they are prepared for what's going to happen and they need oil but we can also see that they are importing gas and we could also see that they are importing coal and it all comes down to the same to the same thing what is their energy mix and what changes will that be in the energy mix and the thrill of the schools affect the position of all but the position of gas as well says my van there hoover and the executive director of the international energy agency spotlight will be back on

to we take a break so stay with us we'll continue this interview in less than a minute. just give me can i speak with you sir let me let me explain my son died in a gun don't agree you don't agree we don't have to look for other name my son isn't isn't in the arena i don't know what is kept me up when he's trying to for you share. the. concern your country. might get a country's incurious. includes the moon or in hope to help you find it. you find in so many own says war and meet some stress.

welcome back to spotlight i'm out of in just a reminder that my guest on the show today. who is the executive director of the international energy agency. as far as i know the e.u. foreign ministers have agreed on an oil embargo against iran which consequences may such a measure have on the oil market. but of course we have to to wait and

see what happens when the sanctions will be in full swing and of course one of the interesting things is what's countries like china. korea japan are going to do they really go into tuesday to bring the their impulse from around from around down that's what they promised to do and the self important thing is who is going to get away from the united states because they are in this as well but if given these assumptions then we consider it likely that about a million barrels a day of iranian crude would have to look for other buyers. answering one of my previous questions you mentioned that the use reserves in the european countries and especially in the in the united states are full that they are full that they

have ever been which which makes me smile because something being full of info is fun but. how provocative the tomato make it to make it clear what i mentioned about the united states at this at that at this moment they are full of then they have been doing the past twenty years specs it's what i meant makes you smile too and this is the this is very good work but the question i want to ask in connection with that being being full of info is how probable is it today that. e.u. and maybe america also will have to release the strategic oil reserves in order to compensate for the lack of rain you know. this is of course a fairly interesting question for the director of international energy agency because when it comes down to stock reviews that's where the well where we are more or less nobody out in charge of fast but it's always about what's the the market's

tells us what we can see now that is that the market of today is much better supplied to than it was last year. when the problems in libya happened at that moment the market was not as well supplied as it is now the to produce us especially opec producers they had to have a certain time to step up production they have been stepping approach a production due in the past few months. and a lot of hits we're talking about one point five million barrels a day exenatide has been put on the markets and in this way opec producers have been meeting the demands of their customers so that means that the market is better supplied than it was before and there is only a reason for a stock release when there is when there is a serious disruption of supply and that's not the case at this moment. the on i e n e is predicting the rise of demand for natural gas

in the forseeable future so in this connection i r i would guess that most of the russian businessmen and politicians politicians there in st petersburg are asking you one of the same question does it mean a rise in the price for natural gas on the on the market. well natural gas in our scenarios natural gas will be. being the first the for. in the first fuel in the in the global energy mix was in a number of hills so it will displace oil and that's together with the growing demand for energy and emerging countries will see to it about well countries like russia are having a great challenge to supply the market with the gas that will be needed and the years to come but there's something else it's also fairly important that we look

into market conditions and that there is a markets for gas and global markets for gas whether it's competition at this moment we are confronting a situation where there are actually three markets for gas station in europe and of course united states so it's important what happens to the prizes or see that there is enough supply for me to do the growing gas demands and second that there is competition to see to with the prices will be more concerting than they are doing at this moment then there's one other thing and that is the investments needed to to bring all this gas for the markets all the gas to them all this gas that is needed and that's i think just a very very important challenge for russia in the coming years. under hoover and there you were speaking at the forum and one of the things you said was very enter i actually i put it down for myself you said i quote no golden age for gas

without golden rules and quote could you please specify what what what one of these rules that you were talking about it. but no golden age for gas without golden rules rules that's true we were discussing the resolution and shale gas and united states and that a number of other countries were also having shale gas reserves would like to exploit them well they're out a cup. rules that have to be observes for instance one is drill wells the other is transparency on for instance the plan to use with during the exploration off to be exploration what about water what about chemicals are all these environmental concerns they have to be met. and that's exactly the reason why at this moment with an international energy agency we are working on this golden rule for the

exploration of shale gas but that's be honest gouverneur for gas apply everywhere let me give you an example when russia is going to defend of the arctic fields and i know that russia is going to do that there are also a golden rules to be observed the same kind of issues the same kind of environmentalists concerns. because if these concerns are not smith's then public opinion will be opposing discussion in the thirty's kind of the if of stiff elements whether it's about choke gas or whether it is about natural gas we always have to bit of might be transparent think about public opinion see to it that you have the right figures for a framework and place and be consistent about what you are doing with the environment. a bit about the new bad clean energy does he. see investment in clean energy as

a priority for european and the g sector in general. while there is something in the european energy sector that worries me a lot and that's what i can see at this moment there is a lot of coal coming to or to europe and a lot of coal is being used to generate electricity instead of gas that's one run of our concerns the other thing is if we really want to have a greener and cleaner energy environment we have to do two things well we have. a number of things but let me mention two one is to see to it that we'll develop a market for a new a bull's eye and that they are cost effective and that's where technology comes in and at the same time that be used gas as a back up because all these renewables intermittent the sun isn't all the shining and the wind isn't always blowing so that's where gas comes in again as well and i think europe but other parts of the world this will have to step in on this.

there was a release by the i.a.e.a. recently and i will quote it it was issued in april and here's what it said. that despite some recent progress in developing renewable energy most clean energy technologies are not on track to make their required contribution to reducing carbon oxide emissions well can you please tell us why is it thorough and what needs to be done through view of the potential of the renewable energy i wish you were just talking. yes it was a report we be published. just before the clean energy ministerial in the end london. and it's we re describes that's at this moment clean energy developments are not on track and we have to see to with that when you have subsidy schemes and at this moment energy still needs to be subsidized in

a number of countries that you have to think about the future and one of the things is to see to it that you're going to defend of the markets and you can't have solar energy everywhere in some regions it's better to have solar energy and other is better to have wind energy but you need a solid answer real stable policy in renewables and and that i come back to gas you need to see to it that you also have a stable policy and gas using electric used to generate a. tricity these are two things that are of us most importance and if we are not doing a discount of things we are not on track and we can see at this moment that's what i mentioned just before that coal is coming into europe because well the price of coal the steep at this moment and that brings a lot of excess you to the emissions so that doesn't help so i think it's absolutely necessary that politicians all over the world and make make real

decisions how to bring renewable energy forward and one of the things that has to be done is a price on carbon and if there's not a global price on carbon then that's b.c. to it that there are regional developments to see to with that there is will be a price of carbon because without a price of carbon it won't work well thank you thank you very much i use i just hope it works because because you know these traffic lights with solar batteries i first saw them a couple of years ago in portugal and this year there are appearing in the streets of moscow i just hope you can also see them in the streets of st petersburg which means it's starting to work thank you thank you very much for being with us and just a reminder that my guest today was my van then who've been executive director of the international energy agency and that's it for from all of us here if you want to have yourself spotlight we have someone in mind if you think i should into next

time just drop me a line alvin i'll ask. are you and let's keep plugging my contract we will be back with more press and comments on what's going on in and outside russia until then day and r.t. and a few. i

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