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inertial scenario, the cost of electricity at constant prices will not vary, according to the minister. Such a scenario, he claims, will prevent Russia from properly implementing its international climate commitments.
On 16 November, BigPowerNews reported that the Federal Anti-Monopoly Service has come up with a draft plan to include entrepreneurial profit (5% of the required gross revenue) into grid tariffs. A month ago, Rosseti CEO Andrey Rumin announced that the company had reached a preliminary agreement with the Ministry of Energy and the anti-monopoly watchdog for the inclusion of dividends into the tariff calculation as 5% of grid revenue. It seems the proposal is moving on and would allow grids to have a proper source of dividends. Although this still seems non-optimal to us, leaving little upside for shareholders from more efficient business management, we believe the news is supportive for the share price, driven by forecasts of higher dividend yields.
Russia generates much less greenhouse emissions than other major economies throughout the globe, but it will bear the brunt of the consequences of global warming more than others. A group of American researchers developed a worldwide geographical index of climatic inequality. According to an article in Science Advances magazine, it represents the national economy’s greenhouse gas emissions to the predicted warming of the country’s climate in the twenty-first century. Russia was rated #1 out of the 192 members of the United Nations, Izvestia writes. This does not imply that Russia generates the fewest emissions, but that the environmental harm caused by global warming will be disproportionately significant in comparison to Russia’s emissions. The major emitters of greenhouse gases from Europe, Asia, and North America are at the bottom of the list since they would suffer from global warming to a much smaller extent owing to their geographical position.
The country’s Permanent Representative to the EU, Vladimir Chizhov, addressed a meeting of the Eurasian Economic Forum held in Italythis weekthat Russia is ready to create a discussion with the European Union on the carbon price, with preliminary contacts already occurred, TASS reports. “When the European Commission provides a conversation, it is an uncommon occurrence. We are prepared, with preliminary discussions having been conducted.” Chizov said when asked about the topic. Meanwhile, the budgetary role is already incorporated in this adjustment process, according to the diplomat. “This means that the revenues that the EU will collect from others via this tax will be spent on meeting the EU’s own obligations, which is questionable from a WTO standpoint,” he said. The EU Carbon Border Adjustment Mechanism applies to power, iron and steel manufacturing, aluminum, concrete, and fertilizers. The tax will be implemented in 2023, but it will not be collected until 2025; instead, data on the amount of greenhouse gas emissions in the manufacture of imported goods will be collected. The European Union has revealed intentions to implement a carbon tax no later than 2026, including metal items, concrete, and fertilizers on the list. Natural gas supply has not yet been included within the scope of the carbon price.
Russia’s Minister of Economic Development Maksim Reshetnikov announced that the Ministry had submitted to the government the final version of the low carbon strategy on 27 October. The document has been
129 RUSSIA Country Report December 2021 www.intellinews.com