Geopolitical factors impacting the growth of the oil and gas sector in Russia

Abstract

The article lists the primary causes of economic disputes between Russia, the US, and the EU over the division of the EU market concerning gas and oil products. It has been determined that these countries have contributed to the conflict’s escalation and have drawn Russia into the Ukrainian crisis in an effort to impede its potential. The authors look into the new paradigm of growth for the oil and gas complex sectors, technological development vectors, and potential directions of the Russian oil and gas complex for delivering commodities to the EU markets. At the same time, the country’s significant reliance on imported machinery highlights the necessity of addressing technological development challenges. It is imperative that policies be formulated in a way that benefits Russian businesses. According to the authors, this can be accomplished by focusing foreign investment on growing Russia’s processing sector, which will create businesses that will produce advanced machinery in the Russian Federation. Additionally, small and medium-sized businesses in the oil and gas industry need to intensify their operations. Eventually, this will stabilize domestic pricing and boost the economy overall by allowing the national market to be saturated with goods and resulting in stable prices for motor fuel and oils used for transportation, mechanisms, and aggregates.