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The transformation in global energy will affect the Russian economy

Global warming and climate change are expected to affect the economy of Russia, one of the world's largest hydrocarbon resource producers in terms of income sources and relations with the EU.

The transformation in global energy will affect the Russian economy

The countries of the world focused on energy prices and evaluations regarding the future energy crisis. As a result of the evaluations made in this direction, it is expected that global warming and the transformation in energy will affect the Russian economy.

IEA REPORT REVEALS THAT OIL HAS THE MOST ROLE IN THE EU'S ENERGY CONSUMPTION

According to the data of the International Energy Agency (IEA), the share of oil in the energy consumption of the European Union (EU) is 34.8 percent (2019), the share of natural gas is 23.8 percent, the share of coal is 13.6%, and the share of renewable energy. was 18 percent.

ENERGY POLICY AND STEPS WILL PROVIDE CHANGE IN THE CONSUMPTION OF ENERGY RESOURCES

However, the EU's policies to increase green energy production and consumption and the concrete steps it has taken in this regard are expected to cause significant changes in the consumption of these energy resources.

COAL CONSUMPTION WILL END BY 2030

According to the estimates of the European Commission, the consumption of fossil fuels in the EU is planned to be halved by 2030. While oil and natural gas consumption is expected to be reduced gradually in 2030-2050, coal use is planned to be largely terminated by 2030.

CHANGE IN ENERGY WILL AFFECT THE RUSSIA ECONOMY

It is predicted that this change in the energy market of the EU, the largest importer of Russian fossil resources, will have a significant impact on EU-Russia relations and the Russian economy.

RUSSIA'S MAIN SOURCE OF INCOME FROM OIL AND NATURAL GAS EXPORTS

The amount of oil and natural gas exports accounts for about 40 percent of the federal budget in Russia. In this direction, Aleksey Kudrin, President of the Court of Accounts, one of Russia's former finance ministers, pointed out that Russia has 10-15 years left to move away from oil and natural gas exports as the main source of budget revenues.

Russia's oil export revenue, one of the world's largest exporters of energy resources, decreased by 40.8 percent in 2020 compared to the previous year and fell to 72.3 billion dollars.

CARBON TAX WILL AFFECT RUSSIA'S REVENUES

It is predicted that the carbon tax that the EU plans to apply will also affect Russia's revenues. In this context, the EU plans to impose additional taxes on products whose production and logistics require high energy consumption. Considering that Russia also exports various metals, fertilizers and chemicals to European countries, 42 percent of its total exports are expected to be affected by this new tax mechanism.

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