Russia reaches for nationalisation

There is a growing impulse to nationalise Russia’s energy sector out of its difficulties, but any steps in this direction would not be taken overnight

Russia might resort to further nationalisation of its energy industry to cope with the challenges posed by international sanctions and other economic repercussions from the war in Ukraine. Although Russia’s energy sector and its broader economy have proved unexpectedly resilient to Western restrictions, great damage has still been inflicted. Oil exporters were hit hard by the loss of European markets, and while they have managed to redirect exports to Asia, this has come at a cost in terms of price discounts. Russia has largely circumvented Western oil price caps, but achieving this has added further costs, including the expense of mustering a fleet of hundreds of so-called shadow tankers. M