The energy intensity of Russia's economy is three times higher than that of the European OECD countries and Japan. The climatic conditions are an important factor for this level, but major reasons are also the high share of energy intensive industries and substantial amount of outdated energy equipment. The energy saving potential is estimated at 45% of Russia's current energy consumption.
The Energy Strategy through 2020 (approved by the Government in 2003) considers improvement of energy efficiency as a vital economic policy direction of the state and envisages a 50% reduction of the energy intensity by 2020 as compared to 2000. The Review reveals that in the years 2000-2005 the energy intensity has reduced by 21% and describes prospects for further energy efficiency improvements, and some relevant measures to achieve these. The best impact is expected from improvements in the electricity sector, metallurgy and other energy intensive industries, as well as a result of an overall restructuring of the economy.