Second only to Saudi Arabia, Russia exported an estimated 7 million barrels of oil per day last year. Buoyed by the high prices and rapidly growing global demand, oil revenues have become the driving force of the Russian economy, while President Putin promised to place “energy security issues” at the center of the agenda of the upcoming July  G-8 meeting in St. Petersburg.

Yet since the sharp change of economic policy by the Kremlin in 2003—which affected transportation, taxation, domestic energy consumption, investments, and ownership—Russia’s oil sector has experienced a number of disturbing trends, including  nationalization of independent companies, lack of long-term investment, and  inefficiency of state-owned enterprises. The rate of production growth plunged in 2005.

Can Russia remain a reliable and stable producer? What are the long-term structural challenges to Russia’s ability to meet the world’s growing demand for oil? How does the ideological shift in economic policy affect foreign investment?  What are the implications for Russia’s relationship with Europe and the United States?

On May 19, AEI will bring together a distinguished group of leading scholars, policymakers, and industry experts from the United States, Russia, and Europe, to discuss these and other questions.