The overview of the problems of the domestic fuel and energy complex

About the author:

Natalya G. Ostroukhova , Cand. Sci. (Econ.), Associate Professor at the Department of Economy, Branch of Samara State Technical University (Syzran)

Abstract:

Fuel and energy complex of Russia is a major revenue generating sector, which provides more than a half of Federal budget revenues. The revenues from energy exports were a “financial shock-absorber” during the dissolution of the USSR and transition to a market economy. A large number of available and cheap hydrocarbons had not contributed to improvement of technical level of the energy sphere, but this sphere, on the contrary, had devolved. The increased production of energy resources in order to maximize export revenues has led to depletion of the mineral resource base. The safety margin provided in the energy industry in the first half of the twentieth century was exhausted by the end of the 90s. Privatization of energy companies and decentralized management of their assets destabilized the financial position of the whole fuel and energy complex. The aggravation of existing problems and appearance of some new ones create a threat to the energy and strategic security of the country. The article provides an overview of the main problems of the Russian fuel and energy complex and their causes and solutions.

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