DBPapers
DOI: 10.5593/SGEM2016/B53/S21.058

PRODUCTION OF MINERAL RESOURCES AND ENVIRONMENTAL IMPACT IN RUSSIA IN ECONOMIC SHOCKS AND CRISIS

B.A.Korobitsyn, A.A.Kuklin
Wednesday 7 September 2016 by Libadmin2016

References: 16th International Multidisciplinary Scientific GeoConference SGEM 2016, www.sgem.org, SGEM2016 Conference Proceedings, ISBN 978-619-7105-67-4 / ISSN 1314-2704, June 28 - July 6, 2016, Book5 Vol. 3, 453-460 pp

ABSTRACT
Exhaustible natural assets play an extremely important role in Russia’s national economy. Russia is one of the world’s leading producers of oil and natural gas and is also a top exporter of metals such as steel and primary aluminum. Russia’s commodity-based economy is vulnerable to endogenous and exogenous economic shocks and crisis. It is demonstrated that extraction of fuel and non-fuel mineral resources in 1995-2015 follows economic booms and downturns, although not strictly in the same way. Since the collapse of the Soviet Union and general decrease of Russia’s economy, an extraction, domestic usage and export of mineral resources decreased too. After the beginning of the restoration of economy in the midst 1990-ties, the production of the majority of mineral resources began to grow. Russia’s economy had averaged 7% growth during 1998-2008 as oil prices rose rapidly. Since then a moderate decrease in mineral production was registered because of the world financial crisis. The period of stagnation was short and in 2009-2010 the revival of the mineral industry of Russia began again. A combination of falling oil prices, international sanctions, and structural limitations pushed Russia into a new long recession from 2012 to 2015. Consequences of this downturn for the mineral industry are examined in the article. Commodity-based economy is characterized by significant environmental impact that follows boom and bust economic cycles. Such key features of Russia’s economy as the efficient use of natural resources, reduction of pollution, and low carbon emissions are considered. To study the existence of “decoupling” effect, changes in resources consumption and environmental pressure are compared with the rate of GDP growth.

Keywords: mineral resources, fuel minerals, nonfuel minerals, air pollution, GHG emission