the RUSSIA oil & gas competitive intelligence report - Report Buyer

Russia Oil and Gas Competitive Intelligence Report 2010
Russia Downstream Rating -- Overview
Russia is at the top of the league table in BMI's updated Downstream Business Environment Ratings,
ahead comfortably of Turkey and Poland. There are a few particularly high scores, but there is some risk
from Turkey over the longer term. There are excellent scores for refining capacity, oil and gas demand,
population and nominal GDP.
Russia Downstream Rating -- Potential Returns
Downstream Market: On the basis of downstream data alone, Russia ranks first among the region's 15
countries, above Kazakhstan. This is attributable to the country's first-placed refining capacity and oil/gas
demand, and third-ranked refining capacity growth potential.
Country Structure: Russia ranks first in terms of the Limits to Potential Returns section, and its Country
Structure has third place in the region, behind Turkey. Growth in GDP per capita is the second-highest for
the entire region. Population and nominal GDP rank first. There is still considerable state ownership of
downstream assets, and the downstream industry is only moderately competitive.
Russia Downstream Rating -- Risks To Potential Returns
Industry Risks: In the Risks to Realisation of Potential Returns section of our ratings, Russia is ranked
second from last, ahead only of Kazakhstan. Its joint lowest score with Kazakhstan for Industry Risks
reflects the harsh regulatory regime and stagnant privatisation trend.
Country Risks: Its broader country risk environment is ranked equal seventh alongside Croatia. The
scores for rule of law and legal framework let the country down badly, and it fares little better in terms of
physical infrastructure. Operational risks for private companies are reduced by the state's high scores for
short-term economic external risk, short-term economic growth risk and short-term policy continuity.
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