Russian Natural Gas Industry Attracts FDI:Analysis Of The Reasons

Natural gas resources are huge wealth hidden in the bowels of the earth. Optimal utilization of natural gas field deposits provides economically reasonable scale of development and the rational consumption of energy produced in the economy. An essential course of Russia’s energ y policy is to create conditions for the expansion of the gas production required to meet the growing domestic demand and maintaining the stability of hydrocarbon exports, which is the largest source of foreign exchange earnings. One element of this course is to attract foreign capital to the Russian economy, in particular to the energy sector. The successful functioning of the energy complex of the Russian economy forms the basis of long-term and sustainable development of the country and makes the complex permanent and major donor for the budget. However, the development of the energy sector, particularly natural gas industry, feels the need for significant financial resources, and this need can not be filled only with its own resources within the country, that is why foreign investment is one of the key problems of the industry. An important role in this process is the use of resources of the industry itself, as well as government’s energy policy, which contains a wide range of economic and administrative control means. In this thesis we consider the issues of attraction and use of foreign investment in the development of the gas industry of Russia: analyzing the role of foreign investment in the development of industry, the problems in the industry that ma ke it difficult to attract strategic investments. The author gives the assessment of the investment climate, proposes measures for its improvement. Also, the author concludes of the need for more efficient use of investment. In other words, the main significance of our study is to examine the possibilities and ways of making the usage of Russian potential more efficient.