Improving Russian Energy Efficiency: Next Steps. 2008. Russian Analytical Digest 46, 25 September, 9-12
Russia has enormous potential to increase its energy eﬃciency. It suﬀers from the lack of modern heating systems in housing, outdated infrastructure and equipment in energy intensive industrial sectors, natural gas leaks from pipelines during transmission and distribution, and oil companies ﬂaring associated gas at their wells. To address these problems, Russia should provide incentives to reduce ﬂ aring, increase domestic prices for gas, breakup the Gazprom monopoly on the pipeline system, and improve the legal framework for inter- national cooperation. T e EU has only indirect levers on Russian domestic policy, so it should work to convince Russia that reducing domestic demand serves both Russian and European interests, help Russia cash in on its eﬃciency potential, and sponsor small-scale energy eﬃ ciency projects that could encourage additional eﬀorts at the grassroots level.