Energy transition in Russia

This article provides an overview of Russian energy policy in the context of the global energy transition. Russia, ranking fourth in the world in primary energy consumption and carbon dioxide emissions, adheres to the strategy of “business as usual” and relies on fossil fuels. Decarbonization of the energy sector is not yet on the horizon: a skeptical attitude towards the problem of global climate change prevails among stakeholders. GDP energy intensity remains high, supported by relatively low energy prices and high cost of capital. The share of solar and wind energy in the energy balance is insignificant and is not expected to exceed 1% by 2040. The challenge for Russia in the coming years is to develop a new strategy for the development of its energy sector, which enters a zone of high turbulence—even in the absence of the influence of the climate change agenda—due to increasing global competition, growing technological isolation, and financial constraints.