The Impact of Climate Policies on Russiaʼs Global Competitiveness in the Context of Sanctions

The expansion of climate change measures on decarbonization and adaptation are implemented by countries in national legislation, including obligations to reduce greenhouse gases (GHGs) by nationally determined contributions that have an impact on integration processes, as climate obligations are primarily linked to the realization of collective actions by the international community. For example, WTO in its report on the interaction of climate and trade issues [Trade and Climate Change, 2022] was pointed to 4,355 trade measures in agreements that are aimed to achieve the climate goals. The topic of climate change particularly affects the energy and metals sectors, in which Russia is currently a key exporter. For example, climate change has brought into focus the issue of ensuring stable supplies of critical raw materials that is needed for the energy transition. Since Russia is currently a key exporter of certain goods, it seems relevant to consider how climate action by Russian importers will affect Russiaʼs positioning in foreign trade under international sanctions. As a result of the study, the authors formulate proposals for Russia to take national measures, taking into account the exports changes.