Oil Industry in Russia: Retrospective Review, Current State and Development Prospects

Abstract

Relevance of the issue selected for the research is directly correlated with Russia’s specialization in oil product exports. The oil industry competitiveness has become the foundation of the country’s economy and living standards. However, current macroeconomic uncertainty significantly affects this industry and despite the nationwide support, the consequences are seen in lower oil production both in physical and financial terms. This article analyzes changes in Russia’s oil industry during the world economic crisis (2008-2009), as well as during the period of economic sanctions against Russia (2014 till present). The estimated changes in output and return on sales in the period of macroeconomic uncertainty were assessed by means of the factor analysis. The development prospects of the oil industry in Russia were assessed by means of the retrospective analysis.