Russian industry needs urgent restructuring. As Anatoly Chubais, Special Representative of the Russian President for Relations with International Organizations, said at the St. Petersburg International Economic Forum today, only 1% of all domestic companies understand this need.

"100% of industries in Russia and 100% of businesses are in a situation where either transformation with deep restructuring is possible, or lagging behind. So far only 1% have understood this, but the situation will not go anywhere," Chubais said.

According to him, Russia is at a fork in the road. "Either the lag is reversible or irreversible. This is where we are ... What we have now, what we are proud of, is there by fact, not by the fact that we have started some transformations. Everything we brag about was done 10 years ago, not by our hands, it was done by itself, because it happened that way. We are at the very starting point. We are one step away from a technological revolution," said the special envoy.

"Today's Russian gas sector operates on a monstrous steam-powered technology with an efficiency of 36%, while the rest of the world operates on combined-cycle technology with an efficiency of 55%. Germany has already announced a program of zeroing out all coal industrial generation; France will shut down its last coal plant next year. Russia is one step away from an industrial revolution on a scale comparable to the Industrial Revolution in 18th century England. There is no other analogue", he emphasized.

Companies may not make this transition, but it will knock them out of the global economy, Chubais is confident.

"No one is forcing Russia to make this transition. If you don't want to, you don't have to! There is enough room in Africa for everyone. However, one must understand that a global redistribution of power in the world is starting. And the set of countries that will overcome this transition will become the world elite. And the one who says that enemies invented this transition will be left to live out the 21st century with 19th century technologies. Here is the fork in the road, where we are," he warned.

In this regard, he named Russia's main trump card to other countries.

"The global energy transition is what creates opportunity. We have such a fantastic advantage that no one else can dream of. We need to grasp it with our teeth and move immediately in this direction. What Russia can do in hydrogen is geopolitically comparable with what Russia is now doing in hydrocarbons. Russia is capable of setting a goal to retain the status of a great energy state, replacing hydrocarbon export with hydrogen export," he concluded.

St. Petersburg International Economic Forum is taking place from June 2 to 5. This year's theme is "Together Again. Economy of the New Reality". The event is organized by Roscongress Foundation.

Made in Russia // Made in Russia

Author: Maria Buzanakova