Asymmetry of Competitive and Industrial Policies in the Russian Oil Industry: Problems and Solutions

In recent years, the regulatory environment for the oil industry and fuel markets in Russia has undergone regular changes, leading to increased uncertainty for businesses. These changes have been exacerbated by the implementation of a large-scale tax maneuver, including the elimination of export duties and the introduction of a dampening mechanism. Additionally, periodic bans on the export of petroleum products have added to the complexity of the regulatory landscape. The aim of this research was to formulate recommendations for enhancing the efficiency of competition and industry policy interactions within the Russian oil sector. To this end, we identified and analyzed the key mechanisms of competition and industry policies in this field, examined discrete institutional alternatives for their combination in countries analogous to Russia, and formulated proposals for reform. In order to alleviate the financial burden on the federal budget and promote balanced development of the Russian oil industry, it is essential to move towards a more liberalized system of fuel price regulation. This entails gradually phasing out the current system of price dampening and restricting retail fuel prices, as these measures hinder competition in the sector. To achieve this goal, targeted subsidies may be introduced for the most disadvantaged segments of society in remote regions. Additionally, a policy may be implemented to revise fuel excise rates and promote the development of alternative energy sources for export. Furthermore, the government could increase investment allowances for oil companies to encourage them to invest in innovative technologies and infrastructure. This study contributes to the ongoing debate on competition and industrial policies in resource-based economies. The findings of this research can be utilized by government officials in formulating regulations for the oil industry with the aim of promoting sustainable development.