As one of the world's largest producers and exporters of natural gas, Russia faces significant challenges in maintaining and increasing its natural gas exports. At the same time, new opportunities are opening up before it. Revenues from the energy sector account for 40 percent of the federal budget. A decline in export revenues would have a negative impact on the country's economy, which is why Russia's natural gas export strategy, which has not been updated since 2009 and does not reflect recent global changes that significantly affect the positioning of Russian natural gas exports, is so important. Focusing on recent developments in global natural gas markets, this study is analytical in nature and based on qualitative and quantitative data sources. The article offers a structured and step-by-step analysis of the challenges and opportunities for Russian natural gas exports, including graphic material and a SWOT analysis, which can serve as the basis for future research and planning.

Key findings:

• The largest natural gas consumption markets are the United States, Europe and Asia. The study analyzes the potential for Russian natural gas exports in all of these markets in accordance with the latest macroeconomic and geopolitical developments, as well as global trends.
• There are no opportunities for Russian natural gas exports on the U.S. natural gas market due to growing domestic shale gas production. The U.S. has become Russia's competitor in other natural gas markets.
• The main destination for Russian natural gas exports is European markets, but the prospects here are mixed, caused by declining consumption, reduced domestic production, and diversification of gas supplies. Competition from other natural gas producers, price wars and geopolitical problems are becoming challenges for Russia. Nevertheless, efforts should be made to maintain the current share of natural gas exports.
• The most promising markets for Russian natural gas exports are Asian markets, including China, India, Japan and South Korea. This is due to the huge capacity of the market, which can accept large volumes of natural gas, the increasing demand for gas and the gradual abandonment of coal. Despite the risk of high competition and oversupply in Asian markets, Russia should ensure its access to these markets and strive to further increase the share of natural gas exports. The development of gas hubs in the East Siberian region is one of the key issues for expanding Russian natural gas exports to Asia.

Reference:

Kutcherov V. et al. Russian natural gas exports: An analysis of challenges and opportunities //Energy Strategy Reviews. – 2020. – Т. 30. – p. 100511.