On April 2, Russia adopted the “Energy Strategy 2035” (ES-2035) planning document (Minenergo.gov.ru, April 2). As noted by Russian Prime Minister Mikhail Mishustin, the country’s fuel and energy complex (FEC) is a driver of domestic economic growth; therefore, “we need to start planning now for how to continue our energy policy once global markets have recovered” following the end of the COVID-19 pandemic (Minenergo.gov.ru, April 2). The energy document suggests that the Russian FEC will become the “central pillar of Russia’s economy in the upcoming decade.” And the domestic economy itself will undergo two major changes: a shift toward “resource-innovative development” as well as a transition of the FEC from a “donor” to the “locomotive of the Russian economy.”
Source: eurasiareview By The Jamestown Foundation
To achieve these broad goals, the ES-2035 puts forth five key objectives (Government.ru, April 2). First is boosting domestic consumption to a qualitatively new level, to be achieved through the introduction/implementation of an integrated complex of measures aimed at modernizing the FEC. Specifically, these measures will consist of inter alia new financial transparency requirements among leading players/corporations operating on the Russian market, the gradual liquidation of some sectoral subsidies, and greater transparency on tariffs.
Second is a greater diversification of exports, drawing particularly on investments in liquefied natural gas (LNG), whose production is to increase by 3.4 times by 2024. Within the scope of this objective, two LNG clusters are to be completed, on the Yamal and Gyda peninsulas (Sever-press.ru, April 3). Furthermore, the ES-2035 states that Russia should develop in-country production of hydrogen and helium to become one of the global leaders in the hydrogen economy.