Financial Journal

p. 25-42

Authors: Irina P. Dovbiy

This study reveals the financial conditions and drivers of the energy transition in the world and in Russia. The purpose of the study is to characterize the essence, content and financial conditions of the energy transition for the national economy. The objectives of the article are to study the features of the energy transition models for developed and developing countries; to consider the impact of "sustainable financing" on the energy transition process; to identify the specific financial conditions and risks. It was found that two major concepts of the energy transition have been formed, reflecting the vision of the goals and timing of completion, conditions and financing formats. The analysis of global investments in the energy transition showed high investors’ optimism: the renewable energy sector is the most attractive; the Asia-Pacific region has become the largest region in terms of investment volume; more energy transition financing programs are implemented in the European Union. The author reveals relationship between policies to achieve carbon neutrality and the phenomenon of "sustainable financing" subject to the principles of ESG, which was expressed in the refusal of the world's leading financial institutions to finance any fossil fuel projects, which could lead to higher demands and direct pressure on the energy and oil and gas sector in developing countries. The main financial risks and financial losses that the Russian economy may face in process of energy transition are outlined. Russia, as the largest exporter of hydrocarbons, will have to adapt to the new conditions despite the unprecedented sanctions pressure on the financial system and the withdrawal of major investors from the oil and gas and electric power sectors. First of all, this is cooperation in the BRICS format — both in the energy and in the financing of infrastructure projects, including within the framework of the BRICS New Development Bank activities. State loans, subsidies, grants, tax incentives, etc. may be used as financial measures of state support for the energy transition.

p. 59-70

Authors: Larisa D. Petrenko, Bahodirhon Sh. Safarov

The need to create an effective global energy structure that meets the current challenges of sustainable development and the growing demand for electricity implies an expansion of the use of nuclear energy potential and necessitates a more detailed study of the prospects for its development, taking into account the economic efficiency, high technology, environmental friendliness and safety of this method of power generation. The purpose of the study is to reveal features of, and identify opportunities for, the global nuclear power development in the conditions of increasing influence of the concept of sustainable development. The study substantiates the necessity and identifies features of the global nuclear power development, characterized by both intensification of capacity obsolescence processes and high degree of their significance in the overall energy structure under conditions of decarbonization. Given the need to achieve the Sustainable Development Goals, the authors justify the necessity of development and implementation at national levels of financial and economic measures in the design of energy markets, taking into account clean energy and the attributes of energy security of lowcarbon technologies, including nuclear energy, supported by the expansion of direct and indirect state participation. The issues considered have practical significance and social implications in terms of solving socioeconomic and environmental problems.

p. 89-104

Authors: Hasmik V. Khachatryan

Studies show that correlations of ESG ratings provided by various rating agencies are fairly weak. The challenge related to disparities in ESG ratings often referred to as “divergence” of ESG ratings is widely discussed in academic and professional community. This divergence may lead to investment decisions made based on misleading information and thus, distort the re-orientation of capital flows into sustainable business. For this reason, there is a growing legislative and regulatory focus on ESG related issues, including the activities of ESG rating providers. The purpose of this article is to conduct a preliminary assessment of the approaches of foreign regulators in addressing the issue of divergence of ESG ratings through an in-depth exploration of this phenomenon and its sources. A careful study of the underlying factors of ESG rating disparities allows us to consider the identified foreign regulatory trends in the context of their focus on eliminating these factors. The methodology of the article is based on the review of the available academic literature and empirical research, study of ESG rating methodologies and analysis of adopted or proposed foreign regulatory requirements. A number of regulatory trends has been identified, which together shape the premise for the development of the regulatory framework of ESG ratings in the future. These trends include a strong focus on corporate ESG reporting and increasing transparency of ESG rating methodologies. However, elimination of the main sources of divergence are not among the tasks of the foreign regulators.

p. 120-137

Authors: Vsevolod Yu. Cherkasov

After thirty years of continuous evolution, following the conceptual reform in 2004–2007 and subsequent easing, the Russian system of FX controls has come to a point where many administrative barriers have already been removed, the residents’ duties to repatriate proceeds from export of goods, except for FX proceeds from raw materials, are being cancelled, and bureaucratic procedures have been streamlined. At this point, the question is raised of what other steps in the field of liberalization of FX controls can be taken in the first place to achieve the ever more urgent goal of developing nonresource exports. The article analyzes the purposes of regulation, describes the evolution of the system, examines experts’ opinions regarding the course of reforms, and concludes with a view of the rational prospects for reforming the system. The central problem is the continuation and expansion of the automatic exchange of financial information between the tax authorities of Russia and foreign countries, which, in particular, would help limit fiscal risks when eliminating the remaining residents’ repatriation duties.