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The Russian oil industry between public and private governance: obstacles to international oil companies' investment strategies

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  • Locatelli, Catherine

Abstract

The low level of involvement by international oil companies in Russia seems difficult to explain given what development of its resources and production has to offer. There are still many restrictions and contradictions, born of the particular institutional and political environment of the Russian oil industry at the end of fifteen years of transition, that act as a bar to international integration. Three factors currently define the establishment of relations with foreign investors. First, because of the many different levels of negotiation with Russian companies, the State and the Regions, the decisions are based on complex relations between the various forces. Second, the reforms, and especially privatisation and the allocation of rights of ownership to deposits, are considered by sizeable sections of public opinion and many political classes to be illegitimate, thus making the issue of international investment and foreign presence still more complicated. Finally, the State's wish to take back the oil industry in order to use it to fulfil its economic and foreign policies is creating further uncertainty. These three elements seriously restrict the entry of international oil companies to the Russian market.
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  • Locatelli, Catherine, 2006. "The Russian oil industry between public and private governance: obstacles to international oil companies' investment strategies," Energy Policy, Elsevier, vol. 34(9), pages 1075-1085, June.
    • Handle: RePEc:eee:enepol:v:34:y:2006:i:9:p:1075-1085
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    2. Dominique Finon & Catherine Locatelli, 2008. "Russian and European gas interdependence. Can market forces balance out geopolitics?," Post-Print halshs-00129618, HAL.
    3. Kropatcheva, Elena, 2014. "He who has the pipeline calls the tune? Russia's energy power against the background of the shale “revolutions”," Energy Policy, Elsevier, vol. 66(C), pages 1-10.
    4. Kalyuzhnova, Yelena & Nygaard, Christian, 2008. "State governance evolution in resource-rich transition economies: An application to Russia and Kazakhstan," Energy Policy, Elsevier, vol. 36(6), pages 1829-1842, June.
    5. Finon, Dominique & Locatelli, Catherine, 2008. "Russian and European gas interdependence: Could contractual trade channel geopolitics?," Energy Policy, Elsevier, vol. 36(1), pages 423-442, January.
    6. Dominique Finon & Catherine Locatelli, 2006. "L'interdépendance gazière de la Russie et de l'Union européenne : quel équilibre entre le marché et la géopolitique ?," Post-Print halshs-00119602, HAL.
    7. Kesicki, Fabian, 2010. "The third oil price surge - What's different this time?," Energy Policy, Elsevier, vol. 38(3), pages 1596-1606, March.
    8. Maria Garbuzova & Reinhard Madlener, 2012. "Towards an efficient and low carbon economy post-2012: opportunities and barriers for foreign companies in the Russian energy market," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 17(4), pages 387-413, April.
    9. Francesca Spigarelli, 2011. "Outward Foreign Direct Investments of the Russian Federation," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    10. Aleksei V. Bogoviz & Svetlana V. Lobova & Alexander N. Alekseev, 2020. "Current State and Future Prospects of Hydro Energy in Russia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 482-488.

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