Innovation and modernization of the Russian energy sector

¹ Department of Agricultural and Resource Economics, University of California, Berkeley, Giannini Hall, CA 94720 Berkeley, United States
² Centre for Energy Studies, Prague Business School, Werichova str. 1145/29, 15200 Prague, Czech Republic
³ Federal State Budgetary Educational Institution of Higher Education “Kuban State Agrarian University named after I. T. Trubilin”, Kalinina str. 13, 350044 Krasnodar, Russian Federation

^* Corresponding author: strielkowski@berkeley.edu

Abstract

Russian energy sector is suffering from the economic, financial, and political sanctions imposed by the United States and the European Union. These sanctions have prevented Russia from accessing oil and gas resources and from exporting natural gas. Low oil prices, combined with sanctions against Russia, can be blamed as a possible cause of Russia’s collapse as an energy producer and consumer. However, the country is struggling to modernize its energy balance. Specifically, Russia’s major modernisation efforts have focused on the energy sector and related industries and services. In support of economic growth and social development, the 2003 Energy Strategy made substantial investments in energy infrastructure, such as the construction of new power stations, transmission lines and power plants. This paper focuses on the recent innovation and modernization trends of the Russian energy sector. It discusses the history and the developments in this sector up to this day, provides some insights into modernization efforts of the sector and describes the perspectives for the deployment of the renewable energy sources.