Energy policy of Russia

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Russia's energy policy is presented in the government's Energy Strategy document, first approved in 2000, which sets out the government's policy to 2020 (later extended to 2030). The Energy Strategy outlines several key priorities: increased energy efficiency, reducing the impact on the environment, sustainable development, energy development and technological development, as well as improved effectiveness and competitiveness. Russia's greenhouse gas emissions are large because of its energy policy.^[1] Russia is rich in natural energy resources and is one of the world's energy superpowers. Russia is the world's leading net energy exporter, and was a major supplier to the European Union until the Russian invasion of Ukraine. Russia has signed and ratified the Kyoto Protocol and Paris Agreement. Numerous scholars posit that Russia uses its energy exports as a foreign policy instrument towards other countries.^[2][3]

In July 2008, Russia's president signed a law allowing the government to allocate strategic oil and gas deposits on the continental shelf without an auction procedure. On 17 February 2011, Russia signed a deal with China, stating that in return for $25 billion in Chinese loans to Russian oil companies, Russia would supply China with large quantities of crude oil via new pipelines for the next 20 years.^[4]

As of 2014, oil and gas comprise over 60% of Russia's exports and account for over 30% of the country's gross domestic product (GDP).^[5] Russian energy policy of pumping 10.6 million barrels of oil a day^[6] is nearly 4 billion barrels annually.

Russia holds 54% of world reserves of gas, 46% of coal, 14% of uranium, and 13% of oil. Russian oil production and export increased significantly after 2000, and in 2006 briefly exceeded Saudi Arabia's production. Since 2016, Russia has been the top crude oil producer. Russia is also the world's largest energy exporter and fossil fuel exporter.^[7] Russia is not a member of OPEC (Organization of Petroleum Exporting Countries) and presents itself as an alternative to Middle Eastern energy resources, asserting that it is in fact a "reliable energy supplier and that it only seeks to use its position as an important supplier to enhance global energy security".^[8] However, in recent years it has cooperated increasingly closely with OPEC in the OPEC+ format.^[9]

The Russian economy is heavily dependent on the export of natural resources such as oil and natural gas, and Russia has used these resources to its political advantage.^[10][11] Meanwhile, the US and other Western countries have worked to lessen the dependency of Europe on Russia and its resources.^[12] Starting in the mid-2000s, Russia and Ukraine had several disputes in which Russia threatened to cut off the supply of gas. As a great deal of Russia's gas is exported to Europe through the pipelines crossing Ukraine, those disputes affected several other European countries as well. Under Putin, special efforts were made to gain control over the European energy sector.^[12] Russian influence played a major role in canceling the construction of the Nabucco pipeline, which would have supplied natural gas from Azerbaijan, in favor of South Stream (though South Stream was also cancelled).^[13] Russia has also sought to create a Eurasian Economic Union consisting of itself and other post-Soviet countries.^[14]