Pricing Pain: Social Discontent and Political Willpower in Russia’s Gas Sector

Abstract

This article explores the influence of socio-economic discontent on the determination of decision makers to cut subsidies on natural gas for Russian households. The authors outline first the organisation of gas supplies and subsidies, and secondly the relationship between policymaking signals and public opinion concerning the minor price adjustments implemented so far. They then examine previous cases of discontent in other sectors, extrapolating implications for a major increase in gas prices. The conclusion is that Russian policymaking is characterised by a pattern of ‘two steps forward, one step back’: decision makers are concerned about discontent, but nonetheless they ultimately press on with reform.

Keywords: Russia, Gas, Politics