Government Support to Upstream Oil & Gas in Russia: How subsidies influence the Yamal LNG and Prirazlomnoe projects

This document provides an overview of several reports and case studies concerning government subsidies and fiscal transitions in Russia and other BRICS nations, specifically focusing on upstream oil and gas projects in the Russian Arctic and coal subsidies.

• An analysis of the Yamal LNG and Prirazlomnoe projects in the Russian Arctic indicates that government support measures have altered the economics of these developments. While intended to correct investment distortions caused by the benchmark taxation system, the 'manual control' of tax breaks for specific projects results in excessively large rent transfers from the government and taxpayers to companies.
• The lack of reliable quantitative estimates makes it impossible to determine if the social benefits of the Yamal LNG and Prirazlomnoe developments outweigh their social costs, which include significant environmental risks.
• The document references broader reports advocating for the preparation of government budgets in BRICS nations (Brazil, Russia, India, China, and South Africa) for a clean energy transition, as well as a study on G20 coal production and consumption subsidies in Russia for 2016 and 2017.

APA

Fjaertoft,, L. P. L. (2014). Government Support to Upstream Oil & Gas in Russia: How subsidies influence the Yamal LNG and Prirazlomnoe projects. International Institute for Sustainable Development. https://www.iisd.org/publications/report/government-support-upstream-oil-gas-russia-how-subsidies-influence-yamal-lng

Chicago

Fjaertoft,, Lars Petter Lunden,Daniel. Government Support to Upstream Oil & Gas in Russia: How subsidies influence the Yamal LNG and Prirazlomnoe projects. International Institute for Sustainable Development, 2014. https://www.iisd.org/publications/report/government-support-upstream-oil-gas-russia-how-subsidies-influence-yamal-lng.

Wikipedia

{{cite report |last1=Fjaertoft, |first1=Lars Petter Lunden,Daniel |title=Government Support to Upstream Oil & Gas in Russia: How subsidies influence the Yamal LNG and Prirazlomnoe projects |publisher=International Institute for Sustainable Development |date=9 July 2014 |url=https://www.iisd.org/publications/report/government-support-upstream-oil-gas-russia-how-subsidies-influence-yamal-lng |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fjaertoft2014government, author = {Fjaertoft,, Lars Petter Lunden,Daniel}, title = {{Government Support to Upstream Oil \& Gas in Russia: How subsidies influence the Yamal LNG and Prirazlomnoe projects}}, institution = {International Institute for Sustainable Development}, year = {2014}, month = jul, url = {https://www.iisd.org/publications/report/government-support-upstream-oil-gas-russia-how-subsidies-influence-yamal-lng}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }