G20 Scorecard of Fossil Fuel Funding

Russia is identified as the second-largest provider of government support to fossil fuels globally, with an annual average of USD 80.9 billion between 2017 and 2019. This support is primarily driven by state-owned enterprise (SOE) investments and tax expenditures for oil and gas production. While the country has phased out some property tax exemptions for pipelines, overall tax expenditures for fossil fuels rose 79% compared to 2014–2016 averages. The report notes significant unquantified support via preferential rail tariffs for coal and regional programs for Arctic oil and gas, as well as a lack of commitment to G20 peer reviews on subsidies.

• Russia provides the second-highest amount of government support to fossil fuels by absolute value, averaging USD 80.9 billion annually from 2017 to 2019. This total includes USD 41.3 billion in SOE investment, USD 27.5 billion in induced transfers, USD 11 billion in tax expenditure, USD 900 million in public finance, and USD 200 million in direct transfers.
• Tax expenditures for fossil fuels have increased by 79% relative to 2014–2016 averages, largely due to support for oil and gas production. The proportion of oil extraction eligible for subsidized tax rates grew from under 30% in 2013 to over 50% in 2019, and is projected to exceed 90% by 2035. Revenue losses from under-taxing oil extraction could reach USD 32 billion by 2033.
• Government support is heavily skewed toward oil and gas, which received USD 52.6 billion, compared to USD 15.2 billion for fossil fuel use, USD 13.1 billion for fossil fuel-based power, and USD 60 million for coal exploration, production, processing, and transportation.
• There are significant forms of support that remain unquantified, including preferential rail tariffs for coal exports and regional support for Arctic oil and gas developments, such as the state-funded nuclear icebreaker fleet. Additionally, lax environmental regulations act as a subsidy; official sources estimate oil spill damage at RUB 10 billion (USD 140 million) per year, though other estimates suggest it could be as high as RUB 280 billion (approximately USD 4 billion).
• Russia's transparency regarding fossil fuel subsidies is rated as poor. While tax expenditures are reported in detail, only one government study has quantified subsidies, and the country has not committed to G20 peer reviews.

APA

Gerasimchuk, I. (2020). G20 Scorecard of Fossil Fuel Funding. International Institute for Sustainable Development. https://www.iisd.org/system/files/2020-11/g20-scorecard-russia.pdf

Chicago

Gerasimchuk, Ivetta. G20 Scorecard of Fossil Fuel Funding. International Institute for Sustainable Development, 2020. https://www.iisd.org/system/files/2020-11/g20-scorecard-russia.pdf.

Wikipedia

{{cite report |last1=Gerasimchuk |first1=Ivetta |title=G20 Scorecard of Fossil Fuel Funding |publisher=International Institute for Sustainable Development |date=2020 |url=https://www.iisd.org/system/files/2020-11/g20-scorecard-russia.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gerasimchuk2020g20, author = {Gerasimchuk, Ivetta}, title = {{G20 Scorecard of Fossil Fuel Funding}}, institution = {International Institute for Sustainable Development}, year = {2020}, url = {https://www.iisd.org/system/files/2020-11/g20-scorecard-russia.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }