Oil prices were higher than expected in 2018 (+30%).
Which is why the initially planned 232 billion USD (15 257 billion RUB) of revenues to the Federal Budget are expected to increase by 27 billion USD (1 800 billion RUB). During the 2018 summer, the government planned to reallocate 162.8 billion RUB (2.43 billion USD) to support the economy, including extra funds for additional capitalization of the Russian Agricultural Bank and Promsvyazbank and to support domestic automotive manufacturers. Estimates predict that Brent oil prices should average 63 USD and 62 USD per barrel in 2019 and 2020 respectively.
The trade of LNG is developing in the Baltic Sea.
Lithuania and Poland already built two LNG terminals on their littoral, Klaipeda and Swinoujscie respectively, as well as in Sweden with a terminal in Gothenburg under construction. These facilities make the Baltic Sea a strategic area for the supply and purchase of gas.
Comparison between OPEC crude oil prices and Russia’s GDP
In total, about 375 billion RUB were spent on import substitution policy.
Including 105 billion RUB of funds allocated as State support from the Federal Budget and the Industry Development Fund. Russian Oil and Gas companies imported 60% of their equipment when the USA and the European Union implemented sectorial sanctions in 2014 on the Russian oil industry, banning its residents from supplying equipment and technologies for Arctic and offshore projects with a depth of over 150 m, as well as for projects on shale oil difficult to extract on land.
Table of Content
- Central Russia
- Far Eastern Russia
- The context of import substitution in Russia
- Future opportunities of Russian export of equipment
- The lack of innovation for new technologies
- Technology development in Russian regions
- Main consumers
- Import substitution for Russian Oil & Gas companies
- The main drivers in import substitution
- Decision making, budget and technical specifications
- Trends on the market
- Components and equipment issues
- Main Activities
Russia is diversifying its export of oil and gas toward Asia.
Europe is traditionally the most important export destination for the Russian company Gazprom with a 36.7% market share, but projects directed toward South-East Asia are being implemented and Russia is gaining access to new markets.
Gazprom and China National Petroleum Corporation signed a contract in 2014 for the provision of 38 billion cubic meter of gas per year.
For example, Gazprom has a 30-year contract for the supply of gas to China through the brand-new pipeline Power of Siberia and the project Power of Siberia-2.
The prospects for European companies to enter the Russian market will be scarcer.
Considering the ongoing processes and the involvement of all players in the oil and gas industry, it is clear that the Russian industry is on the way to independency, except for niche products. Companies purchasing equipment increasingly impose requirements for quality and monitor their implementation, leading to a qualitative improvement in production technology.
MAY 2019 – 32 pages