Energy & Science
Peak Fossil Fuels Is Next Test for Russia’s Battered Economy
- Government-backed Skolkovo warns of plunge in budget reciepts
- Some forecasters estimate that oil prices peaked last year
Oil pumping jacks operate near Almetyevsk, Tatarstan, Russia.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
The economy of the world’s biggest energy exporter is heading for its deepest slump in more than 10 years due to the fallout from the coronavirus. A bigger crisis may be just around the corner.
Analysts at the Kremlin-funded Skolkovo Energy Center warned this month that the nation faces years of economic stagnation as demand for its carbon-heavy exports gradually drops. If Russia doesn’t adapt, budget receipts will “decline drastically” and growth may be limited to less than 0.8% a year for the next two decades, less than a third of what the Economy Ministry is targeting.