Nord Stream 2 Harvard Case Solution & Analysis

Nord Stream 2 Case Solution

Rating agencies and Russia

The rating agencies' views for Russia are highly consistent. Since 2004, Fitch has given the country a treble B rating, which is the second-highest rating for a nation. The agency considers factors including the low external debt and high reserves to determine the grade. The lowest rating for Russia was CCC in August, 2008, and the highest was Baa1 in March 2013. S&P also gives the country a treble B-grade. In January 2015, it assigned BB+, while in December 2008, it was assigned a lower grade.

Importance of oil and gas exports for Russia

There is no denying that gas and oil exports for Russia are crucial to the economy. Currently, the country is facing the worst domestic energy crisis since the disuniting of the Soviet Union. In May, Russia delivered a production cut of 2.5 million barrels per day. Despite this, the country will have to decide which wells to shut down, putting its economy in a precarious position.

Russia's gas and oil exports are an important source of foreign currency for the country. The prices of gas and oil are highly competitive. CIS states, such as: Ukraine and Belarus are now moving towards world prices, which will put pressure on the Russian economy. In addition, Russians can benefit from lower prices in the European Union. It can even offset the high price of oil. There are also other benefits of gas and electricity exports for Russia.

Importance of oil and gas sectors for the Russian economy

The Russian oil and gas industry is one of the most important sectors in the country. When the country was growing rapidly, the oil and natural gas sector accounted for 40 to 50 percent of the federal budget and two-thirds of its exports. Consequently, it is crucial that Russia protect its oil and natural-gas industries from the low oil prices. But how? Let's take a look at the oil and its role in the Russian economy. The oil and gas sector is crucial for the Russian economy. The Russian government needs to make drastic changes to reduce its dependency on these sectors. In the past, the government had to rely on oil and natural gas to support its military. The cost of this is a major obstacle to the country's economy. Despite its low-cost energy supplies, Russia is still one of the world's largest wheat exporters. The oil and gas sectors are one of the most important sectors for the Russian economy. Its high prices are crucial for the state budget and the trade balance. The world's demand for crude oil increased simultaneously with the production cut agreement. Ultimately, the world's crude oil prices stabilized in the $60 to 70 per barrel range in 2019. As a result of which, the Russian oil and natural gas industry crucial for the economy.

Russian gas reserves

In the first nine months of 2021, Russia produced an approx 60 billion cubic meters more gas than in the same period the previous year. Increasing production is not an easy task anytime soon, and the country is already producing at maximum levels to meet winter demand. But despite the large gas reserves in Russia, the Europeans can still rely on Russia to supply the remainder of their needs. Therefore, this is a good thing for Russia and the world.

Despite the high prices, Russia's gas reserves are a significant resource for the country. Its proven reserves alone are enough to supply the country for 103 years of consumption. This is a significant advantage for the country, which can help reduce the price of gasoline and other energy commodities. It also helps that Russia has a huge amount of natural gas reserves - about a quarter of the world's total supply. Using these reserves will provide Russia with a much needed source of fuel further refer appendix 2.

Power of Mr. Putin in Russia and around the world

In November 2007, Vladimir Putin's government published reports on the Russian economy that were critical to the country's economic development. These reports revealed that Russia's GDP growth had slowed down. Although the government claimed to be working to reduce the country's COVID-19 epidemic, it has been slower than the EU's average. The Russian government also had a difficult time dealing with mass public protests during the past year. The government's response to the COVID-19 epidemic has also been below the standard of response. The Russian authorities' attempts to hide the disease have undermined popular trust in the Putin government. The current Russian regime has no clear plan to restart its reforms.

The main role of the Putin's Government in Russia's economy is to help the country avoid economic crisis. By defusing the economic time bombs, the governing elite can stay on top. It is in the interests of society and the economy to continue the reforms. The political system has become much more flexible since the Russian President became President. This is a major step forward in the country's development.

Importance of service industry in the economy of Russia

The Russian service sector is important in many ways. It is the country's largest industry, accounting for 60% of the GDP. Other sectors include financial services, travel and tourism, advertising, marketing, and sales. The economy also relies heavily on agriculture, which accounts for just two percent of its GDP. Despite this, the country is a top exporter of oil. As a result, the need for services is high, and it is essential for the survival of the country's enterprises

The Russian service industry is essential for the survival of a country. The country's GDP is largely dependent on the service sector. The state's share of the GDP was only 35% in 2005. But in 2014, this proportion fell to 70%. In contrast, the contribution of the SOEs to the economy of Russia was almost three-quarters. The service industry accounts for half of the economy of the nation's total GDP.

Comparison of Russia with Ukraine, Belarus, and Poland in terms of economy

Economy of Belarus

A landlocked country in Eastern Europe, Belarus borders Russia to the east, Ukraine to the northeast, and Poland and Lithuania to the northwest. The country's economy is dependent on a variety of industries. The population of the small nation is about ten million people. The government is relatively small, with only around six million residents. It has a GDP of $1.6 billion. As of 2015, it has a low unemployment rate, and has been steadily growing in recent years.

In spite of a growing economy, Belarus's economy has remained stagnant despite the emergence of new growth opportunities. However, it has been hindered by a number of negative external factors. The first of these factors came from the consequences of the global financial crisis. The government responded to the crisis by stimulating the domestic demand, but this only increased imbalances and forced the country into a large foreign trade deficit. This in turn pushed up the gross external debt. Refer Appendix 5............................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Share This


Save Up To




Register now and save up to 30%.