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%).
Political
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.
Dominance of energy resources export in the national economy not only makes it vulnerable to global shocks but also shackles its long-term economic potential. This leads to reducing motivation for investments in human development, growth of social tension, and slowdown of real income growth.
Status
Targets
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).
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.
Budget
Current
On August 28, 2009, the Russian newspaper Kommersant reported that Moscow intends to invest US$1.8 trillion to $2.1 trillion in the oil and gas business by 2030 to increase production in order to keep up with projected European and Asian demand for Russian hydrocarbon exports as well as with increasing Russian domestic consumption.
Current
The state-run gas monopoly Gazprom is the world's largest producer and exporter, and supplies a growing share of Europe's needs. The energy giant Gazprom is close to the Russian state and critics say it is little more than an economic and political tool of the Kremlin.
Key Policies
Recent Legislation
In January 2007 the Kremlin moved the administration of all offshore oil and natural gas deposits to state-controlled Gazprom and Rosneft. Experts said the move was designed to deter foreign investors from acquiring large stakes in the deposits. Shelf deposits will be allocated through contests, rather than auctions, where technological and environmental criteria will prevail over cost.
Miscellaneous
BP and Russia’s Rosneft Sign Landmark Arctic Shelf Oil Deal
Oil giant BP and Rosneft, Russia’s leading energy company have signed a joint venture to exploit potentially huge deposits of oil and gas in Russia’s Arctic shelf.
The deal will see both BP and Rosneft exchange expertise in exploring the Arctic region for new oil reserves and as part of the deal Rosneft will take 5% of BP’s shares in exchange for approximately 9.5% of Rosneft’s company shares.
Transition to Globalisation
Gazprom Seeks Global Deals to Build Gas Grid Encircling Europe
OAO Gazprom, the Russian company that ships a quarter of Europe’s gas, is seeking supply deals in the Caspian, Africa and around the world to anchor its lead in areas where European buyers may turn to rival producers.
Globalisation > Economy > Energy > Sources > Non-Renewable > Gas
Transition to Tools
Gas Pipe Deal Aims to End Russia's Monopoly
Officials from six countries gathered in Turkey and signed a deal to build a U.S.-backed pipeline, aimed at breaking Russia's near-monopoly on natural gas supplies to Europe.
Tools > Regional > Europe > EU > Dom. Policies > Economy > Energy > Non Renewable
Transition to Actors
Rosneft
Rosneft is the leader of Russia’s petroleum industry, and ranks among the world’s top publicly traded oil and gas companies. The Company is primarily engaged in exploration and production of hydrocarbons, production of petroleum products and petrochemicals, and marketing of outputs. Rosneft has been included in the Russian Government’s List of Strategic Enterprises and Organizations
Political Actors > Business > Big Business
