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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.

The analysis of the Yamal LNG and Prirazlomnoe projects in the Russian Arctic indicates that while government support is used to make otherwise uneconomic fields viable, the 'manual control' of tax breaks for 'cherry-picked' projects results in excessively large rent transfers from taxpayers to companies. The document notes that a lack of quantitative estimates makes it impossible to determine if the social benefits of these developments outweigh their social costs and environmental risks.

The report analyzes government subsidies for the Yamal LNG and Prirazlomnoe projects in the Russian Arctic. It finds that Yamal LNG would be uneconomic without state-funded infrastructure and tax breaks, while Prirazlomnoe received substantial tax breaks after most capital expenditures were already sunk, effectively acting as a rent transfer to Gazprom. Both projects are associated with significant environmental risks, including salinity changes in the Bay of Ob and potential oil spills in the Pechora Sea.