Agenda
Challenges
Russia is ranked first in the world by gas reserves (32% of world’s reserves, 30% of world production), the second in oil production (10% share of world production), the third - in coal reserves (22 coal basins, 115 fields, including those in European Russia - about 15.6% in Siberia - 66.8% in the Far East - 12.9%, in the Urals - 4.3%).
In Russia prices of energy are even lower than export prices. This has led to slow development of renewables, despite equally vast renewable resources. According to current assessments, the technical potential of renewable energy in Russia amounts to at least 4.5 billion tons of coal equivalent per year. It mainly includes potential of solar and wind energy and exceeds the current energy consumption in the country by more than 4 times.
Energy Efficiency
Sustainable development of the Russian economy can no longer be provided by extensive development of energy resources. Increasing energy efficiency is the country’s major energy, economic and social resource required for Russia’s transition from the “raw materials export oriented” to sustainable innovative development, mitigation of the negative impact of the energy sector on people’s health and environment.
Political
The growth of the EU’s dependence on Russian energy resources has been exploited by the Russian leadership as an effective tool for putting political pressure not only upon the EU members but also upon the countries whose territories are crossed by the energy transportation routes such as Belarus and Ukraine.
Status
Import/Export
Russia's federal budget revenues from energy product exports have reached 1.8 trillion rubles ($60 billion) so far this year, 31% more than for the whole of 2008. Higher-than-expected oil prices mean Russia has taken in 1.1 trillion rubles ($36.7 billion) from crude oil exports, 49% above the budgeted figure, and 350 billion rubles ($11 billion) from oil refining products, 42% above the plan. Natural gas exports have been hit by lower demand in Europe, contributing 380 billion rubles ($12.3 billion) to the budget, 9% below the planned figure.
Taxes
Alexei Kudrin, the Russian finance minister, is bidding to raise extraction taxes that could yield an extra $6bn in revenues for the budget next year, in a second potential setback for the sector in recent months. In June 2010, the finance ministry said it was scrapping export tax holidays for crude from remote east Siberian fields and instead levying an export tariff of 45 per cent, a move that could raise $4bn.
Institutional Structure
Ministry of Energy of the Russian Federation
The Ministry of Energy is a federal agency under the executive branch responsible for drafting and implementing national policy and legal regulation in the oil and fuel sector, including issues related to the electric power industry, oil production, oil processing, gas, fuel, peat and slate industries, major oil and gas pipelines, renewable energy sources, development of hydrocarbon fields based on production-sharing agreements, and the petrochemical industry.
Russian Energy Agency (REA)
The Russian Energy Agency was founded on December 22, 2009 on the basis of an enterprise Russian Informational Resources set up in 1966. The Agency was established under the Federal Law No 261-FZ “On Energy Saving and Energy Efficiency Enhancement” signed by the President of the Russian Federation on November 23, 2009. The Law is aimed at setting up a legal environment to promote energy efficiency in the Russian Federation.
Composition
Use
Today, more than half of electric power generated in Russia falls to power plants running on natural and associated petroleum gas. Accordingly, less than a half is generated by other plants: nuclear power, hydroelectric power, coal, residual fuel, diesel fuel, etc.
Renewable energy in Russia did not make big strides in 2010. Even though locally, smaller-scale projects started appearing in Russian regions last year, in sum total, the share of alternative energy in Russia’s energy market remained, as before, at a level of one percent. The Russian energy strategy aims to increase that share to 4.5 percent by 2020.
Research and Development
Status
On August 27, 2009, the government of the Russian Federation approved the Energy Strategy for the period up to 2030 (the Strategy) … The Strategy outlines three phases for the process of the national fuel energy complex (FEC) transformation. In order to make the FEC an additional engine for the domestic economy post-crisis recovery, the document sees its substantial overhaul during the first stage (2013-2015).
Areas
One of the more positive results of 2010 for Russia, and one that may indeed give a push to the development of alternative energy in the country is undoubtedly the launch of a renewable energy project by the International Finance Corporation (IFC) – a programme aiming at realising the huge potential of the as-yet untapped Russian green energy market.
Transition to Globalisation
Russia’s Oil and Natural Gas: Bonanza or Curse
This book is bringing together well-known specialists from Russia, Japan, Western Europe and the USA, providing data about the Russian hydrocarbons sector, its size, economic significance, and taxation. It also offers data about the growth of the Stabilization Fund. In addition, it analyses the role of the hydrocarbons sector in Russia’s post-1998 economic boom, drawing attention to the contribution of remittances to Russia of the proceeds of raw material exports.
Globalisation > Economy > Energy > Sources > Non-Renewable > Gas
Transition to Tools
Russia Needs Courage to Tackle Climate Change
No other country on earth wastes more energy than Russia. According to Russian estimates, the country could save about 40 percent of its energy consumption if its energy sector functioned according to Western standards.
Tools > National > Russia > Dom. Policies > Environment > Climate
Transition to Actors
Gazprom
OAO Gazprom is the largest extractor of natural gas in the world and the largest Russian company. Gazprom was created in 1989 when the Ministry of Gas Industry of the Soviet Union transformed itself into a corporation, keeping all its assets intact. The company was later privatized in part, but currently the Russian government holds a controlling stake.
Actors > Business > Big Business
