Alexander Babakov, Vice Speaker of State Duma

– Today in the face of the financial crisis, problems in the energy sector may directly influence Russia’s economy

On June 3 Minister of Energy of Russia Sergey Shmatko reported to the MPs on the state and development prospects of Russia’s energy sector.

Today, in the face of the financial-economic crisis and declining energy consumption, the problems in the energy sector may directly influence Russia’s economy. The report of Energy Minister Sergey Shmatko has clearly demonstrated the situation in the energy sector. RAO UES has left us a very tough legacy and we can improve the situation only with the Government’s active support. We have lots of problems here: the reform is not over yetm; over 70% of the equipment is worn out; many companies are postponing their investment programs; there are problems with anti-monopoly legislation, power tariffs and power market.  

A year ago we supported the idea to establish a Ministry of Energy. This step will help the country not only to promote our energy initiatives abroad but also to solve problems at home. The Government must place the sector under its close control.

Shmatko has made it clear that the key task of the Ministry is to ensure the stability and efficiency of the fuel and energy complex. Our common task is to synchronize the development of the energy sector and the economy. The Ministry is working hard in this direction and is showing quite good performance: no single faults were recorded during the autumn-winter period, the government has supported lots of the Ministry’s initiatives, we have made serious achievements abroad.