THE MAIN RISKS AND FEATURES OF THE RUSSIAN OIL AND GAS INDUSTRY

УДК 338.45: 330.131.7

Abstract

The Russian oil and gas industry basically has certain features, as well as the risks of doing business, among which we can note weather conditions affecting the cost of production, the volatility of the price of a barrel of oil exported from the Russian Federation, the withdrawal of foreign companies associated with the extractive industry from the domestic market, environmental risk that accompanies all oil companies in in the world, significant changes in the process of selling Russian hydrocarbons that have arisen under the influence of sanctions pressure from Western countries, which led to a reorientation to other markets, as well as to the emergence of a discount on the sale of domestic oil. The risks also include the adoption of domestic hydrocarbons by large importing countries, the transition to a “green” economy, which may subsequently lead to the spread of this practice to other countries and, as a result, to a decrease in demand for hydrocarbons in the world as a whole. Also among the risks is the potential withdrawal of the UAE from the Organization of Petroleum Exporting Countries, which will allow one of the major players in the hydrocarbon market to produce without any restrictions in volumes and this could affect the global oil market.

The identification of the main risks will allow us to further identify areas that should be carefully considered when assessing economic security, since on their basis it will be possible to make an assumption about which business results will change more than others, what type of change should be expected. It will also make it possible to further adjust the applied methodology for assessing economic security, if certain factors significantly affect all enterprises in the industry and, therefore, are able to significantly change the overall level of economic security of most companies.