Market changes vex Russian gas policies

Adapted from a presentation prepared for the Russian Event sponsored by the Center for Global Affairs, New York University, and The Carnegie Corp., Feb. 26, 2010.While oil provides most of the energy-export revenues for Russia, natural gas is the source of the principal energy-policy challenges that the country faces. Although roughly 70% of the oil and gas export revenues are for crude oil and refined products, Russia's oil-policy options are limited since the country is largely a price taker and has little or no control over world oil prices. Somewhat ironically, however, many of its energy-policy challenges are rooted in gas pricing issues where it does exert control.Some of those issu...

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