Energy sector in Russia - statistics & facts
Russia has one of the leading energy sectors worldwide, producing some of the largest volumes of oil, gas, and electricity. Furthermore, it is the fourth-largest consumer of primary energy, following China, the United States, and India. At the same time, Russia has one of the lowest residential electricity prices, at only 0.06 U.S. dollars per kilowatt-hour. Thus, the country's households paid for electricity nearly seven times less than in Germany and the United Kingdom (UK). Russia is home to some of the leading energy companies across the globe, such as Gazprom, Lukoil, and Rosneft. In 2022, seven out of ten Russians stated that it was important to them that their country shifts away from fossil fuels.
After many Western countries halted or reduced energy imports from Russia, the country has increased its exports to other regions. Nevertheless, some European countries still purchase some natural gas from Russia, including liquefied natural gas (LNG). Therefore, the country continues to receive significant revenues from energy exports.
Russia’s dependence on energy revenues
Rich in fossil fuels, Russia grew highly dependent on energy exports over the past decades. In the second quarter of 2023, the oil and gas industry occupied 16 percent of the country’s gross domestic product (GDP); however, this share has decreased since the war in Ukraine. European Union (EU) members banned seaborne crude oil and oil product imports from Russia in response to the invasion, while the United States completely prohibited imports of Russian fossil fuels (oil, gas, and coal). Furthermore, the G7 countries placed a price cap on Russian crude oil and oil products. As a result, Russia increased energy exports to China, India, and Turkey. For instance, in the first eight months of 2022, Russia’s seaborne crude oil exports to India grew more than fivefold.Outlook for the Russian energy sector
Under the scenario of the current trajectory of the global energy system, Russia was expected to increase its annual natural gas production by 27 percent between 2022 and 2050. At the same time, the volume of coal production would decrease to approximately three exajoules in 2050. Under the scenario of the energy system's shift toward a reduction in carbon emissions, the country's annual oil production would fall by 90 percent. However, forecasts on Russian energy production and trade are uncertain because the trade flows will depend on global demand trends, national policies of importing countries, and the cost of alternatives to Russian energy sources.After many Western countries halted or reduced energy imports from Russia, the country has increased its exports to other regions. Nevertheless, some European countries still purchase some natural gas from Russia, including liquefied natural gas (LNG). Therefore, the country continues to receive significant revenues from energy exports.
