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Russia s Petroleum Industry in the Period of Sanctions and COVID-19 Pandemic: A Review and Analysis

Author

Listed:
  • Meiramkul Saiymova

    (Atyrau University of Oil and Gas, Baimukhanov St. 45A, 060027, Atyrau, Kazakhstan)

  • Nurken Baikadamov

    (Academician Zulkarnai Aldamzhar Kostanay Social-Technical University, Kobylandy Batyr Ave., 27, 050010, Kostanay, Kazakhstan,)

  • Yuliya Tyurina

    (Financial University under the Government of the Russian Federation, Leningradsky Prospekt 49, 125993, Moscow, Russian Federation;)

  • Georgiy Kutsuri

    (Financial University under the Government of the Russian Federation, Leningradsky Prospekt 49, 125993, Moscow, Russian Federation;)

  • Lola Sanginova

    (Financial University under the Government of the Russian Federation, Leningradsky Prospekt 49, 125993, Moscow, Russian Federation;)

  • Marija Troyanskaya

    (Orenburg state University, Victory Ave. 13, 460018, Orenburg, Russian Federation)

Abstract

Russia s four largest petroleum companies, Rosneft, Surgutneftegaz, Gazprom Neft, and Lukoil, account for more than 50% of petroleum production and 70% of the demand in Russia s drilling market. All these four petroleum companies are profoundly relaying on Foreign Direct Investments (FDI) and import of equipment and technologies. FDI have been mostly received from European Union (EU) countries and United States (U.S.) and also these countries have been major providers of equipment and technologies including technologies for offshore development, horizontal, controlled-angle, and directional drilling, hydraulic fracturing, catalysts for oil processing and petrochemicals, and geological and seismic exploration. However, since applying economic sanctions against Russia by EU and U.S. in 2014 due to Crimea annexation and Ukrainian crisis, the situation with FDI and access to technologies has been dramatically changed. Keeping with the analytical separation between economic and non-economic sanctions and using concept of political economy of energy, this paper focuses on economic energy sanctions, and for brevity refer to them as energy sanctions with emphasizes on technology export ban, foreign capital ban, state support of petroleum industry and in addition, because of the crucial role that petroleum industry plays in the Russian economy, the paper discusses the impact of both energy sanctions and COVID-19 pandemic on national economy.

Suggested Citation

  • Meiramkul Saiymova & Nurken Baikadamov & Yuliya Tyurina & Georgiy Kutsuri & Lola Sanginova & Marija Troyanskaya, 2021. "Russia s Petroleum Industry in the Period of Sanctions and COVID-19 Pandemic: A Review and Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 483-489.
    • Handle: RePEc:eco:journ2:2021-05-54
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    References listed on IDEAS

    as
    1. Navin A. Bapat & Tobias Heinrich & Yoshiharu Kobayashi & T. Clifton Morgan, 2013. "Determinants of Sanctions Effectiveness: Sensitivity Analysis Using New Data," International Interactions, Taylor & Francis Journals, vol. 39(1), pages 79-98, January.
    2. Alexander N. Alekseev & Aleksei V. Bogoviz & Ludmila P. Goncharenko & Sergey A. Sybachin, 2019. "A Critical Review of Russia s Energy Strategy in the Period until 2035," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 95-102.
    3. Afesorgbor, Sylvanus Kwaku, 2019. "The impact of economic sanctions on international trade: How do threatened sanctions compare with imposed sanctions?," European Journal of Political Economy, Elsevier, vol. 56(C), pages 11-26.
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    More about this item

    Keywords

    Petroleum industry; Covid-19; Russia; Energy Sanctions;
    All these keywords.

    JEL classification:

    • P4 - Political Economy and Comparative Economic Systems - - Other Economic Systems
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • K3 - Law and Economics - - Other Substantive Areas of Law
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law

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