In 2018, Russia faced a major challenge when it was sanctioned by the US and EU for its interference in the 2016 US presidential election. These sanctions, which included restrictions on oil and gas exports, had a profound impact on Russia’s economy. In response, Russia shifted its focus to selling more oil at a lucrative price, while also diversifying its energy mix to include renewable sources like wind and solar power.
Despite this shift in strategy, Russia’s gas exports continued to play a significant role in its economy. Gazprom, Russia’s state-owned gas company, remained profitable due to the high demand for natural gas in Europe. However, the company faced challenges in redirecting its gas exports to other markets after the US imposed new sanctions on Russian energy companies in 2021. With no equivalent to Nord Stream, a pipeline that allowed for easy gas delivery to Germany, Russia struggled to find new markets for its gas.
In addition to facing economic challenges, Russia also faced geopolitical tensions with its neighbors. Ukraine accused Russia of stealing natural gas from its pipelines and using it for military purposes. This led to increased tensions between the two countries and raised concerns about energy security in the region. Despite these challenges, however, Russia continued to sell oil at a lucrative price and maintained its position as one of the world’s largest oil producers.
