European Oil & Gas and Energy MNCs in Russia: Innovation Factor

Multinational corporations (MNCs) are an important object of research. One of the aspects, which is studied, is their role and influence on the development of innovations in recipient countries. Direct investments from the European countries have the largest percentage in the overall stock of foreign investments in the Russian economy and energy sector, in particular. European oil&gas and energy MNCs, including BP, Total, Equinor, Shell, OMV, Eni, Enel, Fortum, Uniper have a long-term history of working in Russia, but mostly through bilateral partnerships with leading Russian players. European companies have provided their international experience and innovative approaches while working on joint ventures, as well as support several Russian universities and research centers through corporate social responsibility projects, which are, nevertheless, quite limited. In order to increase the in-novational effect of European MNCs’ activity in Russia it seems reasonable to develop “open†approach based on innovation and production clusters, which include small and medium enterprises, instead of developing relations in “closed†communication networks. One of the examples of “open†approach is the activity of the Italian Enel. Transition of the European economy to low carbon state (including the energy transition), changes in the strategic priorities of the European oil&gas and energy MNCs may have risks for the Russian energy sector (including the transborder carbon tax) as well as provide new opportunities for technological cooperation in the segments of alternative, hydrogen energy and others. Development of clusters may become one of the ways to reconfigure foreign investments, but the specifics of certain locations are to consider. Russian MNCs may also seize the moment to increase and diversify their presence in Europe.