In the Sakha Republic, located within Russia’s Arctic zone, oil and gas production is increasing rapidly thanks to their exports to China. Sakha thus serves as a prime example demonstrating how Arctic oil and gas development significantly contributes to Russia’s federal budget. Among the Russian Arctic regions, Sakha was a region with high public service costs and substantial transfers(subsidies)from the federal budget. As oil and gas production increased, Sakha dramatically transformed from a major recipient of such transfers to a significant contributor to the federal budget, becoming a donor region. The authors analyzed Sakha Republic’s finances and its relationship with the federal budget in detail in Yokogawa and Tabata(2025).
Tabata et al. (Wed,) studied this question.