Nadezhda Filimonova is the International Relations Specialist at the Russian State Hydrometeorological
University, Russia.
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Scramble for the Arctic Offshore Oil & Gas Resources
in Russia
Nadezhda Filimonova
For several decades high prices of oil and gas have been a major driving force for Russia‘s economic growth and state
prosperity. During this period the state mostly relied on natural resources production in West Siberia. Today the
Russian economy is still very dependent on the energy sector, however the traditional areas of energy production cannot
satisfy the demand any longer and the state is facing a challenge of finding a new energy supply area. Arctic offshore
resources represent an alternative energy supply; however severe climate conditions, environmental risks and high
production costs make offshore exploration less attractive. This article examines different approaches and interests of
the Russian state and businesses towards the offshore exploration in the region. Convergences and divergences in the
stances are discussed, providing an outline for the future development of the Russian energy sector with relation to the
on-going international energy market development.
Background
For several decades high prices for oil and gas have been a major driving force in Russia‘s economic
growth, making the country dependent on oil and gas exports and vulnerable to fluctuations in
crude oil prices on the world market. From 1996-1998, up to 14-15% of the state‘s GDP revenues
derived from hydrocarbons production and export; from 1999 – 2003 their share increased to more
than 20% (Berezinskaya and Mironov, 2006), and in 2012 represented almost a half of the federal
revenues (Neftegazovaya Rossiya, 2013). Starting from the 1960s a bulk of hydrocarbon production