All news

Russian oil exports and consumption may fall by 2035-2040 — Economic Development Ministry

Ilya Torosov noted that the Low-Carbon Development Strategy and Russia's overall climate policy are based on shifting away from Russia's economic and budgetary reliance on hydrocarbons and toward production of high value-added products

MOSCOW, January 18. TASS/. The Ministry of Economic Development predicts that the Russian oil exports and consumption will fall between 2035 and 2040, First Deputy Minister Ilya Torosov told TASS.

"According to our projections, the Russian economy's exports and oil consumption will begin to drop around 2035-2040. The volume of power generated from coal will also decline, while the role of new innovative sectors in the economy will expand, particularly in the energy sector - nuclear and renewable sources," he said.

He added that the Low-Carbon Development Strategy and Russia's overall climate policy are based on shifting away from Russia's economic and budgetary reliance on hydrocarbons and toward production of high value-added products.

"In accordance with the presidential decree, our key priority is economically justified decarbonization, ensuring high socioeconomic development indicators, and reaching carbon neutrality by 2060. This balanced idea was used in the development of the tactical plan for implementing the Strategy, which is currently being coordinated among departments, including with the assistance of the Russian climate monitoring system project," Torosov said.

Earlier, Russian Presidential Aide Maxim Oreshkin said in an interview with Komsomolskaya Pravda that rapid growth in demand for oil in the world should not be expected, as the oil and gas sector is not the most promising part of the Russian economy.

He noted that Russia’s main challenge is to retain its role as the most competitive producer of oil and gas as demand begins to decline at some point.

According to Oreshkin, the geography and structure of consumption will also change in the coming years. He also noted that at the end of 2023, oil and production industries made a zero contribution to the growth of the Russian economy.