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Pricing Pain: Social Discontent and Political Willpower in Russia's Gas Sector

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  • Indra Overland
  • Hilde Kutschera

Abstract

This article explores the influence of socio-economic discontent on the determination of decision makers to cut subsidies on natural gas for Russian households. The authors outline first the organisation of gas supplies and subsidies, and secondly the relationship between policymaking signals and public opinion concerning the minor price adjustments implemented so far. They then examine previous cases of discontent in other sectors, extrapolating implications for a major increase in gas prices. The conclusion is that Russian policymaking is characterised by a pattern of ‘two steps forward, one step back’: decision makers are concerned about discontent, but nonetheless they ultimately press on with reform.

Suggested Citation

  • Indra Overland & Hilde Kutschera, 2011. "Pricing Pain: Social Discontent and Political Willpower in Russia's Gas Sector," Europe-Asia Studies, Taylor & Francis Journals, vol. 63(2), pages 311-331.
    • Handle: RePEc:taf:ceasxx:v:63:y:2011:i:2:p:311-331
    DOI: 10.1080/09668136.2011.547700
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    Cited by:

    1. Jeroen Klomp, 2020. "Subsidizing power," Scottish Journal of Political Economy, Scottish Economic Society, vol. 67(3), pages 300-321, July.
    2. Loe, Julia S.P. & Ladehaug, Olga, 2012. "Reducing gas flaring in Russia: Gloomy outlook in times of economic insecurity," Energy Policy, Elsevier, vol. 50(C), pages 507-517.

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