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

Author

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  • Claude Ménard

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, UP1 UFR02 - Université Paris 1 Panthéon-Sorbonne - École d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne)

  • Alexander Kurdin

    (Lomonosov Moscow State University - Faculty of Computational Mathematics and Cybernetics - Moscow State University, HSE - Vysšaja škola èkonomiki = National Research University Higher School of Economics [Moscow])

  • Andrey Shastitko

    (Lomonosov Moscow State University - Faculty of Computational Mathematics and Cybernetics - Moscow State University, Russian Presidential Academy of National Economy and Public Administration)

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

  • Claude Ménard & Alexander Kurdin & Andrey Shastitko, 2020. "Out by the door, in through the window: Politics and natural gas regulation in Russia," Post-Print hal-03534650, HAL.
    • Handle: RePEc:hal:journl:hal-03534650
    DOI: 10.1016/j.jup.2020.101051
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    Cited by:

    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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