The Role of the Host Government in Attraction of Foreign Direct Investment to the Energy Companies: the Case of Rosneft and Gazprom

SWOT analysis of the Russian oil and gas sector shows that the sector has a high resource potential. However, given the shortage of domestic capital of oil and gas companies, a significant part of the projects is financed by FDI. The creation of national advantages (D. Dunning's theory) and competitive advantages (M. Porter's theory) is the main focus of government regulation of FDI in the oil and gas sector. The competitive advantage of companies Rosneft and Gazprom, is expressed in tax breaks, obtaining a license to develop the Arctic shelf. Meanwhile, the sector has a wide range of risks, requiring the creation of an effective risk management system. Example Sakhalin-4 with Rosneft and British Petroleum and Gazprom’s Shtokman project with Total and Statoil. To reduce such risks, the Government in regulating FDI needs to consider the methods of regulating the FDI of foreign partners, such as Brazil, India and China, whose experience has been investigated. Given the above, we can emphasize the importance and relevance of the research topic.