Focus Reports Ltd. Releases New Russia Power Report
16.10.2013 / Energyboardroom
When a geographic region covers about one-eighth of the world’s land surface, the term ‘country’ takes on a whole new meaning. Stretching from Kaliningrad to Big Diomede Island in the Bering Strait, the territory of Russia is blessed with an abundance of natural resources. They have granted Russia the status of global energy giant. The vast amounts of coal, oil and gas in particular have traditionally provided Russia’s heavily industrialized economy with the comparative advantage of cheap energy. Powered by this cheap electricity, the economy regained traction after a transitional decade of decline in the 1990s.
With the World Bank forecasting GDP growth of 3–4 per cent in the coming years, Russia’s outlook is stable and promising. But in spite of the abundance of natural resources, its policy makers struggle to define a model that will both sustain affordable energy and attract investments into its ageing power sector. The sector’s various stakeholders now have the common goal of coming up with a harmonious model to power modern Russia. Created during Soviet times as the backbone of a planned industry-oriented economy, the majority of electricity assets of Russia’s unified electric energy system were transferred into the open joint-stock company Unified Energy System of Russia (RAO-UES) by the new government of the Russian Federation in 1992.
Written after exclusive interviews with the country’s decision makers from local and multinational companies, manufacturers, distributors, experts, legislators, this is a unique resource for those looking beyond figures.