18 December ‘Global Energy Security and International Financial Mechanisms of Risk Management' roundtable took place at the Council of Federation.

Speakers:

• A. P. Vavilov, member of the budget committee
• M. V. Margelov, chairman of the committee for international affairs
• Experts of the Russian Research Center ‘Kurchatov Institute'
• S. Y. Glaziev, academician
• V. L. Makarov, academician and director at the Central Economics and Mathematics Institute
• K. V. Simonov, head of the National Energy Security Fund
• Barry Ickes, Pennsylvania State University (USA)
• Clifford Gaddy, Brookings University (USA)

Uncertainty in field reserve estimates, petrol price volatility, the need for huge investments and capital efficiency in the circumstances of dependency on petrol create uncertainty risks. Senator Andrey Vavilov believes that cooperation between producers and consumers could minimize these risks. Cooperation will empower Russia to expand its presence in the global economy and minimize unwanted petrol and gas risks.

Risk minimization will be possible through a risk exchange mechanism: petrol and gas assets might be exchanged for assets of high technology businesses' (machine-building complex, financial sector, etc.) in various fields of industry and economy.

Risks exchange will enable Russia to receive needed technology.

Also, Mr. Vavilov believes, that two factors impede cooperation - ‘resource nationalism' from producers' side and ‘financial protectionism' from consumers' side. Until these exist, the formula for energy security will not work in Russia or elsewhere.