Title: Russia's Three Biggest Problems
Headings: Russia's Three Biggest Problems
Russia's Three Biggest Problems
2. Weak Institutions
3. Social Cohesion

Content: There is a corporate governance issue and an over-reliance on oil and gas at a time when they may lose their pricing power in Europe once U.S. starts exporting natural gas." According to the report, there are three key uncertainties hanging over Russia. 1. Global Energy Landscape
Russia’s economy relies heavily on its energy sector for economic growth, with an extremely tight correlation between oil prices and the country’s GDP. In the coming decades, Russia will face at least three challenges emanating from a changing global energy landscape. The first will be increased supplies of oil from sources ranging from the United States to Iraq. The second challenge for Russia will be turning the threat of unconventional gas resources into an opportunity, given the potential of shale to undermine Russia’s hold on its traditional and prospective gas importers. The third shift Russia will need to master is in response to a changing demand landscape where, according to all major projections, non-OECD economies will account for the largest share of future fossil fuel demand. Finally, it remains to be seen whether Russia can lead a changing global market structure or whether it merely trails along. While the country could be at the helm of an OPEC-style organization to regulate gas supplies and prices, for example, it could also lose out to strong competition in the liquefied natural gas (LNG) sector and elsewhere."