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Significance

Although Russia has itself adopted net-zero targets, current policy is to use the transition period by ramping up production to monetise reserves of oil. Efforts to reduce the industry's carbon footprint do not detract from these plans.

Impacts

Any delay in oil output recovery will weigh on Russian economic growth in 2022.

The Russian government will continue subsidising refinery modernisation.

Russian oil majors' high dividend yields and historically elevated share prices will reassure shareholders.

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