Russia possesses 18 percent of the world’s reserves in gas, 13 percent in petrol; 70 percent of its export revenues and 30 percent of its gross domestic product (GDP) are based on hydrocarbons. And 20 percent of its gas is exported to Europe. But with the price of oil now below $90, standing at $80.54 a barrel (West Texas Intermediate) and at $85.68 (Brent Crude), coupled with a drop of 1.3 percent of Russian GDP in 2013 and with zero growth forecasted, it is clear that “the old system no longer functions,” said Tatiana Mitrova.<\/p>\n
Russia grew at 6 percent until 2009 and then fell to 0.2 percent this year, per International Monetary Fund (IMF) data. Russia’s gas production stands at 600 billion cubic meters, which is in decline. Novatek’s production is up 1,000 percent and Rosneft is in expansion. But internal Russian market demand is in decline.<\/p>\n
In theory Russia could be a gas hub, but its storage facilities are insufficient. Sanctions have cut off investment funds.\u00a0 The Russian people know little about the sanctions.\u00a0 Within the governmnet, however, there is a move to open markets in China.<\/p>\n
States like South Africa and Iran grew stronger after sanctions.. Russia is surrounded and its people may be ready to change their priorities.\u00a0 Russian energy businesses may learn to be more attentive to this shift and are prepared to turn inward and also toward China.\u00a0 Infrastrcture and Energy in Russia<\/strong><\/a><\/p>\n \u00a0 Russia possesses 18 percent of the world’s reserves in gas, 13 percent in petrol; 70 percent of its export revenues and 30 percent of its gross domestic product (GDP) are based on hydrocarbons. And 20 percent of its gas is … Continue reading ![\"Gazprom\"](\"http:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2014\/11\/Gazprom-300x212.jpg\")
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