The Impact of Sanctions on Sustainable Development Strategies of Oil and Gas Companies: A Comparative Analysis of Russian and International Experience

Introduction. Oil and gas companies are actively integrating sustainable development principles into their strategic and program documents, striving to achieve carbon neutrality in the long term. However, under sanctions restrictions, they are forced to revise the priority areas of their sustainable development strategies. The purpose of this study is to analyze the impact of sanctions on the indicators and results of the implementation of sustainable development strategies by Russian and foreign oil and gas companies. Materials and Methods. We analyzed annual reports and sustainability reports from leading international and Russian oil and gas companies, examining greenhouse gas emissions, hydrocarbon production volumes, and expenditures on achieving sustainable development goals for the period 2019–2023, and establishing the relationship between these indicators. A comparative method allowed us to identify key aspects of implementing sustainable development strategies at leading international and Russian oil and gas companies before and after the sanctions. Results. Foreign companies in developed countries are revising their sustainability priorities, abandoning a number of climate initiatives in favor of intensifying traditional hydrocarbon production and securing shareholder returns. Companies in China and Saudi Arabia are trying to stick to their original sustainable development goals, but the growth in costs to achieve them is outpacing the increase in hydrocarbon production and corresponding emissions. Russian companies are updating their sustainable development goals to focus more on the climate agenda. Discussion and Conclusion. Under sanctions, sustainable development strategies are essential to balance the interests of all stakeholders: shareholders, company management, the state, and society. The results of this analysis have practical significance for companies that are just beginning to integrate environmental goals into their development strategies, as well as for government agencies developing low-carbon development policies.