Global Energy Transition May Cost Russia 10% Of GDP - Presidential Aide

Russia may suffer a 10% GDP loss as the leading world economies abandon coal, oil and gas as part of the global energy transition, Anatoly Chubais, the special presidential representative for relations with international organizations to achieve sustainable development goals, said on Monday

MOSCOW (UrduPoint News / Sputnik - 26th July, 2021) Russia may suffer a 10% GDP loss as the leading world economies abandon coal, oil and gas as part of the global energy transition, Anatoly Chubais, the special presidential representative for relations with international organizations to achieve sustainable development goals, said on Monday.

"Export is that vulnerable zone in which Russia will inevitably feel the impact of the global energy transition ... The implications of the energy transition for Russian exports will be enormous .... We are talking about 10% of GDP. This is more than serious," Chubais estimated.

The Russian economy would suffer as leading economies restructure and introduce low-carbon technologies. Revenues from hydrocarbon exports, meanwhile, account for 40% of Russia's GDP, Chubais noted.

Speaking of hydrogen exports from Russia to the European Union, the official suggested that it may reach at least $20-30 billion by 2030.

The EU is seeking to increase its hydrogen market to 10 million tonnes per year by 2030. This creates excellent opportunities for Russia, which can produce cheap hydrogen fuel, according to Chubais.