Russia: 17-year energy strategy signed

On 5 September 2003 the Government of Russia signed an order on the country's future energy strategy through 2020. Responsibility for the execution of the Energy strategy lies with four ministries: the Ministry of Energy, the Economic Development Ministry, the Ministry of Nuclear Development and the Natural Resources Ministry. Each ministry has to submit to the Government quarterly progress reports. In addition, the Economic Development Ministry and the Ministry of Energy must accommodate the activities envisaged by the Energy strategy in their plan for implementing the main social and economic development policies for the corresponding period.

The executive authorities must also take into account the provisions of the Energy strategy when developing and implementing State regulation in the field of fuel and energy, and in developing the regional energy programmes.

Main provisions of the Energy strategy

1. The gas export volume will increase 51% by the year 2020. The natural gas will be exported to European countries predominantly under long-term contracts (contracts entered into for a period of up to 25 years);

2. The following directions of oil export will primarily be used:

• Northern and north-western direction (in view of the development of the route through the Kolskyi peninsula area);
• European direction: pipeline «Druzhba» connected with the pipeline «Adria» through which the Russian oil goes to the Western Europe;
• Black Sea direction: Caspian pipeline consortium;
• It is also planned to build a pipeline «Angarsk - Nakhodka» which will give the opportunity to export Russian oil to the countries of the Asia-Pacific region;

3. Electricity consumption volume in Russia will increase 40% by the year 2020;

4. The volume of investments is expected to increase. Investments will come from specialised companies and lenders. The State will participate as an investor in projects of strategic importance for the country.

In conclusion, the Energy strategy is based on the forecast of a moderate GDP growth. However, the strategy incorporates various scenarios for the development of the fuel and energy industries and the economy in general.

For more information on the above topic, please contact:

Natalia Kozyrenko
Email: [email protected]
Tel: 00-7-095-2585000