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Arctic Yearbook 2013
Scramble for the Arctic Offshore Oli & Gas Resources in Russia
operated in accordance with the Federal Law 183-FZ ―On the Continental Shelf‖, dated 30
November 1995, and the Federal Law 191-FZ ―On the Exclusive Economic Zone‖, dated 17
December 1998.
Regulation of offshore activities on the continental shelf falls under the jurisdiction of the Ministry
of Natural Resources and Ecology and under the respective governmental entities. In particular, the
Federal Agency for Subsoil Use (―Rosnedra‖) is responsible for geological survey, insurance and
license assessment of subsoil use and for auctioning licenses for subsoil use.
According to Russian legislation, the state has exclusive rights on subsoil use – no one can extract
subsoil resources without the state‘s consent. The right for any resources extraction can be granted
in a form of a subsoil license or a state contract.
The 2008 amendments to the Federal Law ―On Subsoil Resources‖ have specified strict criteria for
subsoil users who are applying for offshore licenses. The amendments provide an access to offshore
activities only to a legal entity with 5 years experience in development of deposits on the Russian
continental shelf; established in accordance with the legislation of the Russian Federation and with a
government stake of over 50% in its charter capital (Consultant, 2008). Currently, only two Russian
state-controlled companies – oil company Rosneft and gas company Gazprom meet the criteria.
The amendments were also introduced to the legislation covering issues of foreign investment in
strategic deposits. Under the new amendments, foreign companies are deprived of the right to
obtain subsoil licenses and the right to develop strategic deposits, and are obliged to report to a
government agency every time they acquire 10% or greater share in a Russian company that works
in a strategic sector (Federal Antimonopoly Service of the RF, 2008).
The amendments introduced went in line with the general policy towards strengthening the
government control in the energy sector and protection of the state‘s national security interests. In
particular, the ―National Security Concept of the Russian Federation‖, revised in 2000, prescribed an
increase in state control over foreign investment and the introduction of well-grounded limitations
on granting subsoil licenses to foreign companies (Security Council, 2000). Adopted in the following
year, the ―Marine Doctrine for the Period up to 2020‖ stipulated the protection and implementation
of sovereign rights on geological surveys and the exploitation of offshore resources (Security
Council, 2001).
Government and Private Energy Companies‟ Approaches towards Offshore Oil
& Gas Development Policies
The Arctic continental shelf monopoly held by the two companies Gazprom and Rosneft
contributed to the emergence of two different approaches towards offshore project development
within a political nomenclature in Russia. According to Rustam Tankaev, a leading expert at the
Russian Union of Oil and Gas Industrialists, in the Russian energy industry two centers of power
have been formed, including the Presidential Commission for the Strategic Development of the Fuel
and Energy Sector and Environmental Security, who‘s executive secretary also holds the Presidency
of Rosneft, Igor Sechin (2012-present), and the Government Commission for Fuel and Energy