Nationalization of Energy Assets and Regional Welfare; Sakhalin 2007

26 Pages Posted: 24 Dec 2007

See all articles by Judith A. Thornton

Judith A. Thornton

University of Washington - Department of Economics

Date Written: June 2007

Abstract

Between 2001 and 2007, rising prices of oil and gas provided a gigantic domestic windfall for Russia's government in the form of export duties and resource taxes. However, the windfall created incentives for the federal government to re-capture control rights to natural resource stocks. Thus, the past four years have seen a substantial transfer of effective ownership from private firms to government control. This study explores why multinationals were willing to commit billions of dollars of FDI to a remote Russian island in the North Pacific. It asks how the de facto re-nationalization of energy assets will impact the availability of advanced technologies, investment efficiency, and environmental risks to the North Pacific fishery.

Keywords: Russia, energy, expropriation

JEL Classification: P28, Q40

Suggested Citation

Thornton, Judith A., Nationalization of Energy Assets and Regional Welfare; Sakhalin 2007 (June 2007). Available at SSRN: https://ssrn.com/abstract=1077971 or http://dx.doi.org/10.2139/ssrn.1077971

Judith A. Thornton (Contact Author)

University of Washington - Department of Economics ( email )

Box 353200
Seattle, WA 98195
United States
206-543-5784 (Phone)
206-685-7477 (Fax)

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