Russian Energy Sector – Driving or Hindering Human Development?

Moscow, 19 April 2010 – The energy sector makes a vital contribution to the country’s main socio-economic parameters of development, in particular the national income and budget. At the same time, according to the National Human Development Report for the Russian Federation Energy and Sustainable Development launched by the United Nations Development Programme today, the influence of the energy sector on human development is not that straightforward. The new report offers a detailed analysis of a major challenge in modern Russia – development of the fuel and energy complex in the context of its impact on human development and sustainable development of the country.


Dominance of energy resources export in the national economy not only makes it vulnerable to global shocks but shackles its long-term economic potential. This leads to reducing motivation for investments in human development, growth of social tension, and slowdown of real income growth. Single-industry economic structure can prevent a person from fully realizing his or her potential.