Towards an energy strategy

The Russian government’s long-term energy strategy to 2020 was sent to the Cabinet for discussion last month and should be approved before the summer holidays. The development of the energy sector remains a priority for the Kremlin, accounting for half the economy and just over three-quarters of stock market capitalization.

“Russia will always be primarily a raw materials exporter. It is where Russia’s competitive advantage lies and despite the efforts to diversify the economy the Kremlin will never lose sight of the importance of these resources to Russia’s future development,” says Rory MacFarquar, an economist with Goldman Sachs.