Russia: Privatize the Oil Industry?

Michael Cohick

June 28, 2017

Saudi Arabia may be the world’s largest exporter of crude oil, but Russia is its largest producer. Hence the importance of Russia’s participation in the agreement between OPEC and some non-OPEC producers to extend their pledge to cut output until the end of the first quarter of 2018.

Stable oil prices at acceptable levels are vital for the health of Russia’s economy. An efficient oil industry is just as important. One of Vladimir Putin’s senior advisors has recently suggested, radically, that the oil industry should be fully privatized.¹ The gauntlet has certainly been thrown down to the country’s state-owned companies.