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Russia

Critical minerals, policy, and the energy transition

The Energy Transition in Russia


Russia stands as a global giant with profound influence on the world's energy dynamics and mineral resources. Spanning two continents and endowed with vast and diverse natural landscapes, Russia is not only one of the world's largest producers of oil and natural gas but also a treasure trove of critical minerals essential for the global energy transition towards renewable sources. Russia has a complex administrative structure comprising 85 federal subjects, which are grouped into different types of administrative divisions. The country harbors significant deposits of critical minerals, making it a key player in the global supply chain. Among these, nickel, copper, lithium, and rare earth elements. The country has initiated steps towards embracing renewable energy. Hydroelectric power stations have long been a staple of Russia's energy landscape, and there's growing interest in further developing renewable sources, including wind, solar, and geothermal energy. The vast, sparsely populated areas of Siberia and the Far East, in particular, offer untapped potential for large-scale solar and wind projects. However, the transition is complex, influenced by economic, geopolitical, and infrastructural factors.

Latest news and insights

Stay ahead in the energy transition with SFA (Oxford)’s cutting-edge insights into how Russia’s vast critical mineral reserves, geopolitical tensions, and ESG risks are redefining global supply chain strategies and energy security planning.

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Russia's international economic, trade, and security alliances
Russia's energy and power mix

Federal cities

Russia's federal cities, Moscow and Saint Petersburg, are distinguished entities within the nation's administrative framework, reflecting their paramount importance in historical, cultural, and political terms. Moscow, the capital, stands as the heart of the Russian government and the epicentre of its economic and social life, hosting the nation's leading institutions, multinational corporations, and a vibrant cultural scene. Saint Petersburg, often referred to as Russia's cultural capital, is renowned for its majestic architecture, historic sites, and extensive network of canals, embodying a unique blend of Russian and European heritage. Both cities are not just centres of power and culture but also hubs of innovation and education, driving the country's development forward and playing a critical role in its international relations. Their status as federal cities underscores their unparalleled significance in shaping Russia's identity, policy direction, and place on the world stage.

Territories (Krais)

In Russia, a krai is a significant administrative division, akin to a territory, that plays a vital role in the nation's governance, economy, and cultural landscape. These regions are characterised by their vast geographical expanse, encompassing a variety of natural environments from dense forests and towering mountains to expansive plains and river basins. Krais often serve as important economic hubs due to their abundant natural resources, including minerals, oil, and gas, as well as their agricultural and industrial capacities. The administrative structure of a krai is designed to manage its diverse needs, from local governance to economic development, making each krai unique in its contribution to Russia's overall prosperity and cultural richness. With their strategic importance and rich natural resources, krais are integral to Russia's efforts in exploring renewable energy potentials and securing critical minerals for the global market, underscoring their pivotal role in Russia's present and future.

The Republics

Republics in Russia are federal subjects with a high degree of autonomy, including their own constitutions and governments. They were established to acknowledge the cultural and ethnic diversity within Russia, allowing ethnic minorities to exercise greater cultural, educational, and sometimes linguistic autonomy. Each republic is meant to serve as the homeland for a specific ethnic group, although in practice, many republics are ethnically diverse.

There are 22 republics in Russia, each with its unique cultural heritage and often its official language in addition to Russian. These republics can set their official languages and enact legislation that reflects their cultural and ethnic identities.

Autonomous Okrug (Circuits)

In Russia, autonomous Okrugs, or Autonomous Circuits, are federal subjects designed to acknowledge and manage the unique cultural, social, and economic characteristics of indigenous and minority populations within their territories. These regions, often situated in remote parts of the country, are granted a degree of autonomy that allows them to preserve their traditional ways of life, languages, and cultural heritage. The governance of these okrugs is tailored to support the specific needs of their communities, balancing local traditions with the broader objectives of the Russian Federation. Rich in natural resources, many Autonomous Okrugs play a crucial role in Russia's economy, especially in the energy sector, contributing significantly to the nation's oil and gas production. This unique blend of autonomy, cultural preservation, and economic importance makes Autonomous Okrugs indispensable to understanding Russia's diversity and its regional governance and development approach.

Autonomous Oblast

The Jewish Autonomous Oblast, situated in the Russian Far East near the China border, stands as a unique federal subject within Russia's administrative landscape. Established in the 1920s to create a homeland for Jewish people within the Soviet Union, it represents a unique historical experiment in autonomy and cultural identity. Though the Jewish population today constitutes a small minority of the Oblast's total inhabitants, the region retains its distinct status and cultural heritage. The capital, Birobidzhan, is known for its Yiddish influences, including street signs and public institutions, preserving Jewish culture. The Jewish Autonomous Oblast's existence attempts to accommodate diverse cultural identities within its vast territories, making it an intriguing example of cultural autonomy and historical significance in the Russian Federation.

LithoX | Critical Minerals and the Global Energy Transition

The global energy transition to net zero is underway. Who is leading? How are supply chains being secured? How do the geopolitics vary? SFA (Oxford) provides a global overview of critical minerals, policy and legislation.

Europe

Europe's focus on circular economies and sustainable practices underpins its approach to critical minerals like lithium and cobalt, essential for e-mobility and energy storage. The region's advanced economies drive innovation in mining and recycling, aiming for supply chain resilience.

Rare Earths Elements

Critical components powering the global economy, from high-tech consumer electronics to essential renewable energy technologies.

Minor Metals and Minerals

Minor metals play a pivotal role in advancing the energy transition by enabling significant improvements in energy efficiency and the performance of clean energy technologies.

Meet the Critical Minerals team

Trusted advice from a dedicated team of experts.

Henk de Hoop

Chief Executive Officer

Beresford Clarke

Managing Director: Technical & Research

Jamie Underwood

Principal Consultant

Ismet Soyocak

ESG & Critical Minerals Lead

Rj Coetzee

Senior Market Analyst: Battery Materials and Technologies

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