The Economy of Russia
Oil, Gas and the State Champions
Companies such as Gazprom, Rosneft and Lukoil dominate energy, and pipelines tied Russia to Europe for decades.
Energy is the backbone of Russian power.
Companies
Gazprom controls gas, and Rosneft is a state-controlled oil giant, alongside private Lukoil.
Pipelines
Pipelines carried gas to Europe for decades, creating mutual dependence.
Revenue
Energy taxes fund a large part of the federal budget.
Vulnerability
Falling prices or lost markets reduce revenue and hurt the budget.
A pipeline dispute
When gas supply is cut, European users scramble for alternatives, and Russia loses income.
Assuming energy dependence is always a strength
It also creates vulnerability.
Key takeaways
- Gazprom and Rosneft are giants.
- Pipelines linked Russia to Europe.
- Energy funds the budget.
- Dependence is a risk.
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