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Out by the door, in through the window: Politics and natural gas regulation in Russia

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  • Ménard, Claude
  • Kurdin, Alexander
  • Shastitko, Andrey

Abstract

This article deals with the regulation of the natural gas sector in Russia through the lens of institutional economics. It proposes a framework in which ‘meso-institutions’ bridge the gap between the macro-institutions shaping the ‘rules of the game,’ with the Kremlin at the core, and the micro-layer within which firms operate. We argue that the slow reform process comes from conflicts of interest embedded in these meso-institutions, specifically: the Federal Antimonopoly Service, the Ministry of Energy, and the Ministry of Economic Development. Based on official documents, data from various public sources, and semi-directive interviews and discussions, our analysis shows that parties are locked in a sub-optimal equilibrium.

Suggested Citation

  • Ménard, Claude & Kurdin, Alexander & Shastitko, Andrey, 2020. "Out by the door, in through the window: Politics and natural gas regulation in Russia," Utilities Policy, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:juipol:v:64:y:2020:i:c:s0957178720300461
    DOI: 10.1016/j.jup.2020.101051
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    1. James Henderson & Arild Moe, 2019. "The Globalization of Russian Gas," Books, Edward Elgar Publishing, number 18923.
    2. Alston,Eric & Alston,Lee J. & Mueller,Bernardo & Nonnenmacher,Tomas, 2018. "Institutional and Organizational Analysis," Cambridge Books, Cambridge University Press, number 9781107451254, January.
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    7. North,Douglass C. & Wallis,John Joseph & Weingast,Barry R., 2013. "Violence and Social Orders," Cambridge Books, Cambridge University Press, number 9781107646995, January.
    8. Claude Ménard & Alejandro Jimenez & Hakan Tropp, 2018. "Addressing the policy-implementation gaps in water services: the key role of meso-institutions," Water International, Taylor & Francis Journals, vol. 43(1), pages 13-33, January.
    9. North, Douglass C., 1971. "Institutional Change and Economic Growth," The Journal of Economic History, Cambridge University Press, vol. 31(1), pages 118-125, March.
    10. Tarr, David G., 2010. "Export restraints on russian natural gas and raw timber : what are the economic impacts ?," Policy Research Working Paper Series 5195, The World Bank.
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    1. Claude Ménard & Ivan Shabalov & Andrey Shastitko, 2021. "Institutions to the rescue: Untangling industrial fragmentation, institutional misalignment, and political constraints in the Russian gas pipeline industry," Post-Print hal-04012224, HAL.

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