Modernisation of the Russian Energy Sector: Constraints on Utilising Arctic Offshore Oil Resources

Abstract

This essay examines the modernisation of the Russian energy sector as revealed in the case of Arctic offshore oil. The Russian actors involved have various interests but their simultaneous realisation is impeded by the structural constraints within the policy environment of Arctic offshore oil projects. Russia’s foreign policy choices vis-à-vis Ukraine, leading to sanctions targeting Arctic oil projects, and global oil market developments amplify the constraints on the resource geographical, financial, institutional and ecological dimensions of the policy environment or structure. This delays Arctic offshore oil projects, and hampers the oil industry’s modernisation and its capacity to generate income for Russia’s overall modernisation.