LIFE AFTER OIL
We are witnessing the end of the oil super cycle that was leveraged by commodity-exporting countries to significantly improve their living standards and accumulate reserves. This cycle is very likely to be the last of its kind. The share of oil in global GDP is constantly contracting. Renewables are now the major trend in the world energy sector. Fully electric and hybrid vehicles are gaining momentum in the car industry, which continues to be the main consumer of oil. Given that oil prices may remain low for a long period of time, it is clear that the Russian economy will have to change, as its growth potential has decreased to 1.5–2% a year. Driving innovation is no longer an option, but a necessity. But how difficult will it be to transition to a new model and what is preventing the economy from getting there now? What industries will gain an advantage and become the new leaders of growth? How can we convince the government that change must be a priority to ensure that Russia does not lag behind forever?
Herman Gref , Chief Executive Officer, Chairman of the Executive Board, Sberbank