A New Energy Age in Pacific Russia: Lessons from the Sakhalin Oil and Gas Projects

A noted British specialist in Russia's economic geography and the Far East region presents a comprehensive account of the development of the onshore and offshore oil and gas deposits of Sakhalin. Following a review of early multinational activity in geological surveying and exploration during the 1970s, he charts subsequent changes in the entities formed to develop and exploit the deposits (Sakhalin-I and -II) later in the Soviet period and during the first two decades of Russian independence. These changes have responded to improved knowledge of the geology of the deposits and changing relations between the Russian central government and Sakhalin regional authorities. Also analyzed are efforts by the Russian side to overturn or otherwise modify terms of previous agreements deemed unfavorable, and maneuvering by China and Japan to secure increasing sources of supply for their markets. With Sakhalin's two core projects now entering the active production phase, the author distills a number of key issues that have shaped the development of the island's offshore hydrocarbon resources and will have a bearing on prospects for a future generation of less spectacular new projects (incremental development); he also outlines wider lessons that have been learned over the life of Sakhalin's projects. Journal of Economic Literature, Classification Numbers: F210, L710, L950, P330, Q400. 4 figures, 2 tables, 45 references.     

Developments in Russian Gas Production Since 1998: Russia's Evolving Gas Supply Strategy

An American geographer and prominent authority on the oil and natural gas industries and resources of Russia and other former republics of the Soviet Union reports on overall trends in Russia's natural gas production in the years following the country's ruble devaluation and financial crisis. The account—based on systematic in-country observations, discussions/interviews with industry executives, and a review of industry sources—focuses on factors affecting domestic supply and demand as well as export capacity (will Russia have enough gas to meet rising domestic demand while fulfilling its export obligations?), regional patterns of production (and performance of Gazprom regional production enterprises), obstacles to the use of associated gas derived from crude oil extraction, and major pipeline construction projects in West Siberia and the Russian Far East. The paper concludes by outlining CERA's forecast for Russian gas production to 2020, also disaggregated by region. Journal of Economic Literature, Classification Numbers: L71, O13, Q40, Q48. 7 figures, 8 tables, 51 references.     

Observations on the Geographical Dimensions of Russia's Resource Abundance

A UK-based authority on Russia's economic geography examines the geographical dimensions of Russia's resource abundance, devoting particular attention to the spatial redistribution of resource rents generated by extraction, primary processing, and fabrication. After establishing Russia's credentials as a "resource-abundant economy," the author identifies the country's resource regions and considers their relative importance in terms of population, territory, and national economic contribution. He then considers the various dimensions (and different geographies) of resource rent, focusing on the oil and gas sector. The paper extends Gaddy and Ickes' (2005) macro-economic assessment and discusses the consequences of rent redistribution for interregional income flows as well as Russia's territorial cohesion. Journal of Economic Literature, Classification Numbers: O11, O13, O18, Q30. 5 figures, 1 table, 55 references.     

Environmental Degradation of Russian Coastal Regions: Exploring the Gulf of Finland

An American geographer and Russian ecologist discuss current and prospective environmental hazards precipitated by large-scale infrastructure projects on Russia's southern coast of the Gulf of Finland. The region, investigated by both authors during the course of regular field research from 1999 to 2009, is one of the best environmentally preserved coastlines of the Baltic Sea with abundant potential greenfield sites, largely due to its closed-border-zone status during the Soviet period. A favorable location for trade also places the region under intense development pressure. The authors devote particular attention to two major developments, a multifunctional port complex (which inter alia serves as a major pipeline terminus and oil export port) and expansion of an existing nuclear power plant. Based on extensive personal observations and government documents, they analyze the emerging environmental threat posed by these initiatives as well as the challenging political environment that discourages public participation and local involvement in spatial planning.     

Observations on the Influence of High Oil Prices on Russia's GDP Growth

A noted economist and observer of post-Soviet affairs presents a study probing the influence of high oil prices on Russia's GDP growth. The paper analyzes the contributions to the country's GDP by sectors of origin and final use, and pays special attention to the influence of trade margins produced by oil and gas but recorded and placed by Goskomstat Rossii in Russia's trade sector. The author's interpretation of statistical data released by Goskomstat Rossii as well as by Russian customs authorities enables him to conclude that the present-day economic boom in Russia can be characterized as consumption-led growth fueled by oil and gas export revenues. Journal of Economic Literature, Classification Numbers: C67, C82, E23, L71, Q43. 2 figures, 10 tables, 20 references.     

Observations on Changes in Russia's Comparative Advantage, 1994-2005

A senior Japanese specialist on Russia's economy and its oil- and gas-producing sectors calculates that country's Revealed Comparative Advantage (RCA), Revealed Comparative Disadvantage (RCD), and Trade Specialization Index (TSI) on the basis of foreign trade data compiled by Russia's Federal Customs Service. The focus is on changes in comparative advantage of Russia's major export and import commodities over the 1994-2005 period. The results of the analyses make it possible to test the assertion that the increasing competitiveness of oil and gas exports (and secondarily those of armaments, selected base metals, roundwood, and fertilizers) must compensate for declining competitiveness in (and increasing imports of) meat, plastics, and automobile production and stagnation in the machinery sectors. Journal of Economic Literature, Classification Numbers: F02, F14, 011. 4 figures, 8 tables, 11 references.     

Russia's Involvement in the International Environmental Process: A Research Report

The paper surveys Russia's engagement, both in terms of policy formulation and implementation, with the main initiatives outlined at the 1992 United Nations Conference on Environment and Development (UNCED). Although coverage extends through the entire period from 1992 to present, a particular focus is on recent developments under the Putin administration, a period characterized by an ostensibly utilitarian approach to environmental management. Russia's response to the recent World Summit on Sustainable Development (WSSD) is assessed in the broader context of the country's problems in effecting major environmental policy changes.     

Putin's Second Term Is Likely to Differ from His First: A Rebuttal

The author of "Russia's Economic Transformation under Putin" replies to comments and critical assessments of his paper by two prominent Western specialists on the Russian economy. His rebuttal to the more severe critic of the two emphasizes the prospective change in Putin's approach to economic reform during his second presidential term. The author believes that economic policymaking in the Kremlin, rather than the impact of world oil prices, will tend to shape Russia's considerable economic growth. Journal of Economic Literature, Classification Numbers: E60, E63, F13, H20, H60, P21. 8 references.     

Russia's Energy Policy: A Framing Comment

A prominent specialist on the Russian economy provides a framing comment on two preceding papers entitled "Russia's Energy Policy" (by Vladimir Milov, Leonard Coburn, and Igor Danchenko) and "Russia's Energy Policy: A Divergent View" (by Matthew J. Sagers). The author argues that Russia's current energy policy should be viewed as an outcome of competition between three overlapping programs. In this context, he identifies three policy models—the old Soviet, the liberal or oligarchic, and the most recent state capitalist. The latter is currently supported by President Putin, who prioritizes diversification of the country's economy at the expense of diminished investments in the oil and gas sector. Journal of Economic Literature, Classification Numbers: L71, O13, Q40, Q48. 2 tables, 2 figures, 22 references.     

Perspectives on the Potential of Russian Oil

A prominent American specialist on the economy of the former USSR comments on Russian oil in light of a preceding paper on the subject. Noting the congruence of Russia's economic growth with world oil prices, the author points out that the country's growth is endangered by sharp declines in those prices. He also recalls how an oil windfall shaped Russian thinking in the 1970s, questions how long Russia can pump oil at its maximum level by invoking the American experience from 1859 through the peak in 1970 until the present, analyzes the two corporate models in the Russian oil sector, and briefly outlines Putin's new approach to foreign investment in the sector. Journal of Economic Literature, Classification Numbers: L71, O13, O18. 3 figures, 8 references.     

Russia's European policy under Medvedev: how sustainable is a new compromise?

This article argues that Dmitry Medvedev's term in office, despite the continuity in Russia's foreign policy objectives, brought about a certain change in Russia's relations with the European Union and the countries of the Common Neighbourhood. The western perceptions of Russia as a resurgent power able to use energy as leverage vis‐à‐vis the EU were challenged by the global economic crisis, the emergence of a buyer's market in Europe's gas trade, Russia's inability to start internal reforms, and the growing gap in the development of Russia on the one hand and China on the other. As a result, the balance of self‐confidence shifted in the still essentially stagnant EU–Russian relationship. As before, Moscow is ready to use all available opportunities to tighten its grip on the post‐Soviet space, but it is less keen to go into an open conflict when important interests of EU member states may be affected. The realization is slowly emerging also inside Russia that it is less able either to intimidate or attract European actors, even though it can still appeal to their so‐called ‘pragmatic interests’, both transparent and non‐transparent. At the same time, whereas the new modus operandi may be suboptimal from the point of view of those in the country who would want Russia's policy to be aimed at the restoration of global power status, it is the one that the Kremlin can live with—also after the expected return of Vladimir Putin as Russia's president. Under the current scheme, the West—and the EU in particular—does little to challenge Russia's internal order and leaves it enough space to conduct its chosen course in the former Soviet Union.     

Existential nationalism: Russia's war against Ukraine

‘If Russia stops fighting, there will be no war. If Ukraine stops fighting, there will be no Ukraine’ is the sentiment used by Ukrainian protesters mobilising against Russia's invasion of Ukraine. Such a sentiment signifies the stakes of a war where Ukraine is a democratic nation-state fighting for its right to exist against a Russian invasion. Meanwhile, Russia is fighting for a version of Ukraine that is subservient to Russia's idea of what Ukraine should be as a nation-state: under a Russian hegemon geopolitically, where Ukraine's national idea and interpretation of history can be vetted and vetoed by the Russian state. While nationalism scholarship equips us to study Russia's war against Ukraine through the lens of Russian ethnic nationalism and Ukrainian civic nationalism, the ethnic/civic dichotomy falls short of unpacking the more pernicious logics that pervade Russia's intentions and actions towards Ukraine (demilitarisation and de-Nazification). Instead, this article explores the logics of Russia's war and Ukraine's resistance through the concept of existential nationalism where existential nationalism is Russia's motivation to pursue war, whatever the costs, and Ukraine's motivation to fight with everything it has.     

Local Politics,Economic Structure,and Performance: The Case of Sakhalin

Two geographers assess the results of the State Duma elections in Sakhalin Oblast and relate the regional pattern of voting to varying socio-economic conditions of the region. The research is structured to test a working hypothesis that voting patterns in large part can be explained by regional variations in economic structure and performance. More specifically, it explores whether, at the rayon level, there is any relationship between: (1) economic specialization and election results; (2) economic trends and election results; and (3) long-term socioeconomic indicators and election results. The case study is presented as a caveat against the uncritical use of national party preferences as a measure of the political climate in Russia's regions. Journal of Economic Literature Classification Numbers: J60, O18, R12. 2 figures, 7 tables, 36 references.     

The Regional Context of Islam in Russia: Diversities along the Volga

A noted investigator of Russia's ethnic and geopolitical affairs presents case studies of six regions (in aggregate home to ca. 5.8 million Muslims, or over one-third of Russia's total) within the Volga and North Caucasus districts in an effort to demonstrate the importance of the regional context in which Russia's Muslims reside. Drawing upon field interviews (through March 2006) and information from local media, the author shows how the milieu in which Islam is practiced diverges markedly across regional boundaries. The diversities are traced to location, history, ethnocultural affiliation, number of adherents, educational resources, and relations between Islamic leaders and government officials. Also analyzed is the role of the two major competing spiritual centers of Islam in Russia, and the sense of regional self-identity. Journal of Economic Literature, Classification Numbers: H70, Z10, Z12. 1figure, 28 references.     

REGIONAL DISTRIBUTION OF THE RUSSIAN FEDERATION'S EXPORT EARNINGS OUTSIDE THE FORMER SOVIET UNION AND ITS IMPLICATIONS FOR REGIONAL ECONOMIC AUTONOMY

The distribution of foreign export earnings by area of origin is analyzed for the Russian Federation, to convertible and non-convertible currency areas, as well as for four major commodity categories. The paper focuses on identifying, because of Russia's narrow export composition, oblast-level units (and commodities) that contribute disproportionately to the Federation's overall convertible currency earnings. It then explores the implications of the extremely uneven spatial districution of such earnings for the Russian government's efforts to devise a workable formula for distributing export revenues between the “Center” and the localities.     

Technological utopianism in the twenty‐first century: russia's nuclear future

The Soviet nuclear power establishment, the second largest in the world, has embarked on an ambitious program to build dozens of reactors between 2003 and 2020. The rejuvenation of that Soviet establishment through Russia's Ministry of Atomic Energy (MinAtom) is based on the technological utopianism of Russian political and scientific leaders. They see nuclear energy as a way to maintain Russia's great power status. They have adopted approaches to reactor development prominent in the Soviet era. These include building dozens of new reactors in construction time faster than seen before in world history, upgrading several Chernobyl‐type reactors, accepting spent fuel from abroad for storage in exchange for cash, and floating—literally—nuclear power stations on barges for use in Russia's far north and for export. There are few controls on MinAtom within the government, and public involvement in the technology assessment process is limited.     

History perceptions and national identity among Latvian youth: Entrapped between narratives of Latvia and Russia?

This article examines the extent to which history forms national identity among Latvian youth. Being a multiethnic country, Latvia provides a unique opportunity to study the role of history in nation-building among dominant and minority ethnic groups. The majority of Latvia's ethnic minorities are Russian-speaking; therefore, a peculiarity of the Latvian case is the influence of the historical narratives promoted by Russia. The research problem of the paper is the formation of national identity when a foreign country promotes distorted historical narratives to discredit a state. The empirical findings are based on 30 in-depth interviews with young people. The main conclusion is that history plays a rather limited direct role in forming national identity among youth in Latvia. The influence of Russia's historical narratives is observable but not as strong as expected in the context of Russia's influence activities.     

Russia after the Global Financial Crisis

Two prominent American specialists on the Russian economy present a fundamental analysis of basic economic factors explaining how the global financial crisis has played out in Russia and its implications for the country's future. More specifically, the authors examine the consequences of Russia's dependence on and addiction to resource (oil and gas) rents and of the management system put in place under Vladimir Putin to maintain, secure, and distribute these rents. They then investigate how each of these factors has emerged from the crisis and how it might evolve in the years ahead. Focusing on the distinction between rent dependence and addiction, the authors question the conventional wisdom that diversification of Russia's economy (away from oil and gas) is a desirable objective that will render it less vulnerable to external shocks. Journal of Economic Literature, Classification Numbers: E020, F020, G010, O130. 15 figures, 44 references.     

Geographic and Historical Observations on the Future of a Federal Russia

A paper assessing prospects for the future of federalism in Russia investigates geographic and other factors that historically have either promoted or inhibited the unity of the Russian state. Among the major factors complicating the process of forging a new federal relationship among Russia's central government, republics, and oblast-level units, the paper focuses on the question of the Russian state's legitimacy, the only partial character of democratization, limited experience with constitutional federalism, and contradictions between individual and ethnic rights. 2 tables, 19 references.