level (Egorova, 2020). Coal prices remain low - 25%
lower than before the introduction of the self-isolation
regime. According to World Bank expectations, gas
prices will recover in 2021, while coal prices will
remain at current levels. Despite attempts to diversify
the Russian economy over the past decade, the fuel
and energy complex still plays a crucial role in
Russia's development (Vladimirov, 2019). The World
Bank estimates that the fossil fuel sector generated
about 14% of Russia's GDP in 2018, and fuel
provided 52% of the country's total merchandise
exports. The share of oil and gas revenues in the
federal budget for 2018 was 46%, for 2019 - 39%. For
comparison, in 2006 this figure was 47%. The
coronavirus pandemic has had a sharply negative
impact on the Russian energy sector. In April-May
2020, Russian oil and gas revenues decreased by 43%
compared to the same period in 2019; in the period
from January to May, the decrease was 30.1%. In the
second quarter of 2020, the federal budget had a
deficit of 823 billion rubles, for the first time since
2017 (Egorova, 2020).
According to the September forecast of the
Ministry of Economic Development, Russia's GDP in
2020 will decrease by 3.9%. Earlier, the ministry
predicted a decline of up to 5%, and a number of
experts considered even this forecast too optimistic,
predicting a reduction in Russia's GDP to 10% in
2020. Given the importance of the energy sector in
Russia, the question of its further development is now
essentially a question of the development of the entire
Russian economy. Russia also faces two serious
global challenges. First, the world is currently in a
deep climate crisis. According to the 2018 Special
Report of the Intergovernmental Panel on Climate
Change (IPCC) (“The 1.5 Degree Report”), so far
human activities have led to an increase in the average
global air temperature by 1 °C compared to pre-
industrial levels. If current trends continue, between
2030 and 2052 global warming will reach 1.5°C
above pre-industrial levels. This will entail dangerous
consequences for all countries of the world, including
Russia. Global climate change leads to an increase in
the frequency and intensity of extreme weather
events, such as strong winds, heavy precipitation,
abnormally hot or cold weather, tornadoes, etc., as
well as to a rise in the water level in the World Ocean,
which has amounted to already 16-21 cm. Extreme
weather events, in turn, cause significant economic
risks, such as risks in agriculture, threats to food
security, disruptions in production processes due to
natural disasters, destruction of industrial facilities,
housing, infrastructure, changing consumer
preferences. According to Roshydromet, the average
annual air temperature in Russia in 1976–2018 grew
2.5 times faster than the world average, and the
number of hazardous events in the period 2014-2018.
in Russia almost tripled the value of 1998–2002.
Secondly, the world is in a state of ecological disaster.
This is expressed in the destruction of forests,
pollution of soil, water and air, loss of biodiversity
and destruction of natural ecosystems. According to
one of the largest estimates of biodiversity loss,
produced by the Intergovernmental Platform on
Biodiversity and Ecosystem Services (IPBES) in
2019, the average species diversity in most terrestrial
habitats has declined by 20% since 1900. About 1
million species of animals and plants are under threat
of extinction. Pollution of air, water and soil directly
affects the quality and life expectancy of people.
According to the World Health Organization (WHO),
atmospheric air pollution annually causes 4.2 million
premature deaths in the world and 33.3 thousand in
Russia (Meckling, 2020).
3 RESULTS AND DISCUSSIONS
Another important challenge for Russia is that some
neighboring countries are beginning a large-scale
transformation of their economic systems. In
December 2019, the European Union decided to
implement a new development program called the
European Green Deal. This program aims to achieve
zero net greenhouse gas emissions in the EU by 2050.
This will require fundamental changes in European
economic policy, which will affect, among other
things, Russia, an important economic partner of the
bloc. Russian exports are among the most carbon-
intensive in the world (Molchanova, 2019; Egorova,
2020). The introduction of cross-border carbon
regulation in some jurisdictions will have a
significant impact on the competitiveness of Russian
petrochemical, metallurgical, agricultural and other
products. The EU may introduce such regulation as
part of the implementation of the European Green
Deal as early as 2021. In addition, a number of
countries are planning to move towards carbon
neutrality by the middle of the century (that is, set
themselves the same goal as in the European Green
Deal) and achieve 100% clean or even renewable
energy. The goal of 100% clean energy is
controversial, since in addition to RES, clean energy
usually includes nuclear power (Meckling, 2020).
This approach should be considered unacceptable due
to the significant environmental and man-made risks
of nuclear power plants. In June 2019, the UK became
the first country in the world to formally commit itself