Prospects of Russian Engagement in the Green Economy

Transition towards sustainable development and green economy is one of the leading trends in international systems. Russia, although, it formulated and has implemented its strategy in this area, remains on the sidelines of the process. Meanwhile, international economic ties under certain conditions can become an important catalyst of general economic advancement and building of green economy. The purpose of the article is to outline the role of Russia in international cooperation in the sphere of green economy by analyzing its quantitative and qualitative involvement in international trade of environmental goods, flow of green foreign direct investments (FDI) and related scientific and technological exchanges. The research hypothesis is that Russia’s involvement in green international economic ties might foster its economic growth as well as improve its quality. Currently, Russia’s involvement in international economic ties in the sphere of green economy is on a relatively low scale. Russia is more involved into world green imports rather than related exports. Its share in world exports of environmental goods is marginal, despite some growth in the share of environmental exports in the national exports of goods in the last decade. The number of green projects on the territory of Russia realized by foreign partners so far remains insufficient. A promising recipient of FDI in Russian economy is renewable energy sector. Renewables are also in the main focus of related scientific and technological exchange. The article reveals that Russia has competitive advantages in two commodity groups. Key importers of these environmental goods are Belarus, Russia and India. Thus, in order to increase Russia’s involvement in international economic ties in the sphere of green economy it is worth developing a set of export incentives for environmental goods, which show competitive advantages for Russia internationally, and to attract FDI into those sectors.

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