This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Russia Seeks to Protect Economy From Energy Transition
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > World > Russia Seeks to Protect Economy From Energy Transition
World

Russia Seeks to Protect Economy From Energy Transition

Editorial Board Published October 1, 2021
Share
Russia Seeks to Protect Economy From Energy Transition
SHARE

MOSCOW—Russia is looking to limit spending from its sovereign-wealth fund as the global transition away from fossil fuels threatens the backbone of its economy.

President Vladimir Putin has ordered the government to look into raising the threshold for tapping into the $190 billion National Wealth Fund, which holds part of the country’s oil-and-gas proceeds. Currently, authorities are able to invest money from the fund once the liquid part of its assets reaches 7% of gross domestic product. Mr. Putin now wants to raise that level to 10% of GDP, a move that would effectively curtail spending from the fund.

Mr. Putin’s order comes after the country’s finance ministry said global efforts to reduce emissions and transition away from fossil fuels could hit Russia’s budget from the early 2030s. Oil-and-gas sales contribute as much as one-fifth of the nation’s GDP, while fuel and energy products make up the majority of Russia’s exports.

“Since the international financial economic environment of Russia is very, very unpredictable and fraught with crisis risks, the role of the [fund], of course, is very big and difficult to overestimate,” Kremlin spokesman Dmitry Peskov told reporters Friday.

Limiting spending from the fund could affect Mr. Putin’s plans to overhaul the nation’s creaking infrastructure and boost economic growth. Earlier this year, the government said it could invest as much as 400 billion rubles, equivalent to $5.5 billion, a year from the National Wealth Fund into infrastructure and development projects.

On Thursday, the finance ministry recommended a more cautious approach to spending the fund’s money after conducting stress tests on its budget outlook.

“The stress test results reflect that, if the most ambitious scenarios for reducing emissions are implemented, the issue of the sustainability of the federal budget can arise as early as the beginning of the 2030s,” the ministry said. “In light of this, investing additional income accumulated in the period of relatively high prices must be especially careful.”

The ministry expects a downtrend in the oil market in the medium to long term, saying that international oil prices could drop to $35 a barrel in 2030 and to $25 a barrel by 2050 as demand falls around the world. On Friday, Brent crude, the international benchmark, was trading at $78.74 a barrel.

“The ministry of finance is worried about the potential drop in oil demand and prices,” said Dmitry Dolgin, Moscow-based economist at ING Bank. “This calls for higher quality of state savings going forward.”

Climate change and its impacts on the Russian economy have risen to the top of the agenda of the Russian government in recent years as scientists say that temperatures in the country are rising at higher rates than the global average and massive forest fires devastate parts of the nation.

This summer, Mr. Putin ordered authorities to develop a plan to cut carbon emissions to below European Union levels by midcentury. The EU aims to reach net-zero emissions by 2050.

Russian companies are also making a green push as they seek to fend off new regulations and respond to growing pressure from investors.

Write to Georgi Kantchev at [email protected]

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:PAIDWall Street PublicationWorld News
Share This Article
Twitter Email Copy Link Print
Previous Article Pandemic’s Peloton Obsession Turns to Peloton Fatigue Pandemic’s Peloton Obsession Turns to Peloton Fatigue
Next Article Foxconn Made the iPhone in Your Hand and Wants to Make the EV in Your Garage Foxconn Made the iPhone in Your Hand and Wants to Make the EV in Your Garage

Editor's Pick

New Council of Financial Advisors report finds tariffs not inflicting inflation

New Council of Financial Advisors report finds tariffs not inflicting inflation

Former Trump administration head of financial coverage Tomas Philipson discusses President Trump’s commerce talks with South Korea and Japan, present…

By Editorial Board 4 Min Read
NBA Summer time League takeaways: Warriors rookie Will Richard makes debut vs. Spurs
NBA Summer time League takeaways: Warriors rookie Will Richard makes debut vs. Spurs

Richard makes debut SAN FRANCISCO – The Warriors‘ acquisition of their three…

5 Min Read
Moriah Plath Reveals Complete Hair Loss Attributable to Alopecia
Moriah Plath Reveals Complete Hair Loss Attributable to Alopecia

Studying Time: 3 minutes Moriah Plath is clearing the air, as a…

5 Min Read

Oponion

Tiffany Trump Pregnant: Her Motherhood Journey With Husband Michael Boulos Defined

Tiffany Trump Pregnant: Her Motherhood Journey With Husband Michael Boulos Defined

Studying Time: 3 minutes As anticipated, Tiffany Trump was in…

January 21, 2025

Labour is ‘completely not’ engaged in school battle, Prime Minister Sir Keir Starmer insists | Politics Information

Labour is “absolutely not” engaged in…

November 19, 2024

China’s Online Game Companies Fall in Line With Restrictions on Entertainment

Hundreds of Chinese online game companies…

September 24, 2021

When will election outcomes be obtainable to California residents? Right here’s what to know

By Angela Rodriguez, The Sacramento BeeSACRAMENTO…

October 16, 2024

How Robinhood Investors Robbed Themselves

Following the crowd works—until it doesn’t.…

January 21, 2022

You Might Also Like

Donald Trump plans to hit Canada with new tariff – whereas warning of blanket hike for different nations | US Information
World

Donald Trump plans to hit Canada with new tariff – whereas warning of blanket hike for different nations | US Information

Donald Trump has mentioned he plans to hit Canada with a 35% tariff on imported items, as he warned of…

5 Min Read
Salami salmonella outbreak: 2 extra hospitalized, dozen new diseases reported
World

Salami salmonella outbreak: 2 extra hospitalized, dozen new diseases reported

Well being officers mentioned a salmonella outbreak linked to pork deli meats offered at grocery shops and in ready sandwiches…

4 Min Read
Defined | What was the premise of Viceroy Analysis’s wanting Vedanta?
World

Defined | What was the premise of Viceroy Analysis’s wanting Vedanta?

The story to this point: India miner Vedanta Ltd.’s (VEDL) inventory slumped almost 8% on Wednesday (July 9, 2025) after…

12 Min Read
Authorities to announce new scheme because it ramps up AI adoption with backing from Fb proprietor Meta | Politics Information
World

Authorities to announce new scheme because it ramps up AI adoption with backing from Fb proprietor Meta | Politics Information

The federal government is rushing up its adoption of AI to attempt to encourage financial development – with backing from…

5 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?