Analysis of economic situation in Russian Federation - Case study of crude oil sector

Artem Kamaliev

Bachelor's thesis

Abstract:

SummaryOil is the most important source of energy in the world, accounting for 33% of global energy consumption.The oil complex is a strategically important element in the economy of Russia and has great importance in the socio-economic development of the country.The results of the oil industry activities are the basis of the base for the formation of the federal budget, ensuring stability of the national currency. There is a direct dependency between these results and how quickly and successfully the consequences of the global financial crisis and the economic sanctions, imposed by the countries of Western Europe and North America, will be overcome. In this regard, studying the problems and prospects of the economic situation in the Russian Federation in the Crude Oil market appears to be especially important.A little less than 80% of proven oil reserves were accounted for eight countries as of January 1, 2015. Six of these countries are members of OPEC, and only two (Canada and Russia) are not members of OPEC.Russia is on the 6th place in oil reserves and it is on the 2nd place after Saudi Arabia in oil production.The main problems of Russian oil exports to the world market can be attributed as a dependency from the European Union from the main importer of crude oil, and increased competition on the European market in the supply of oil. The situation is worsened by higher costs, compared to most other exporting countries, and taxes that actually makes Russian oil uncompetitive, leads to a decrease in exports in the baseline scenario and a negative impact on budget revenues, especially in conditions of low world prices.

Keywords

economic growth, international relations, restrictions, Russia

Language used: English

Date on which the thesis was submitted / produced: 14. 3. 2016

Thesis defence

• Supervisor: doc. Ing. Mansoor Maitah, Ph.D. Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme / field:
Economics and Management / Economics and Management