Abstract
The global natural gas market is one of the fastest growing energy markets. Russia is the second largest natural gas producer，and natural gas is its important strategic resource. As one of the main sectors of the Russian economy, natural gas plays a key role in the country's financial revenue and trade balance. In addition, it is also an important part of Russia's foreign policy. The structure and system of Russia's natural gas industry are inconsistent with its future development. We assess the natural gas security risks facing Russia by using HHI index, which takes into account the concentration of Russian natural gas exports. By calculating the HHI index, we found that Russia's natural gas export risk level differs considerably over different years. Russia is making efforts to promote the reform of the industry, and the government has constantly revised the draft energy strategy, to propose the latest derection for the long-term development of the natural gas industry. Russian gas strategy is to diversify the ways, directions and conditions of supplies to the world's major energy markets. Russia's layout of LNG export can helps boost trade growth, and promote the diversification of its natural gas exports.Keywords: Russia, Natural Gas, Energy Strategy, Energy SecurityJEL Classifications: Q4, Q40, Q48, C8DOI: https://doi.org/10.32479/ijeep.10755
Highlights
Russia has almost 20% of the world’s proven reserves of natural gas and produces about 17% of world’s overall output (BP, 2019)
Through the observation on the targets of Russian gas exports, it shows that the number of Russian gas export countries and regions was comparatively small between 2001 and 2008, which was only 18, and its natural gas export market concentration was high, it focused on European countries
Russian gas exported to Germany accounts for more than 23% of total volume, the proportion of natural gas exported to Italy remains above 14%, and the proportion exported to Turkey rose from 8.6% in 2001 to 15.2% in 2008
Summary
Russia has almost 20% of the world’s proven reserves of natural gas and produces about 17% of world’s overall output (BP, 2019). The decline in global energy prices and the sharp drop in global oil and gas demand, especially in Europe, have led to a decline in profits in the oil and gas industry and financial difficulties for energy companies (Aslund et al, 2011) Under these circumstances, the main principles of the Russian gas strategy are to diversify the ways, directions and conditions of supplies to the world’s major energy markets; expand Russia’s influence in the LNG market, taking advantage of existing opportunity; strengthen positions in traditional markets (primarily in Europe), increase the price competitiveness of Russian gas in Europe and ensure reliability and uninterrupted supply; minimize transport risks during gas exports to Europe; actively entry into the natural gas markets of Asia-Pacific countries (Vatansever, 2017; Orttung and Overland, 2011). In the “2035 Energy strategy Draft,” the development prospects of the Russian natural gas industry are mainly related to Russia’s natural gas supply to foreign markets
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
