BAKU, Azerbaijan, June 8. Upstream oil and gas investment in Eurasia is set to fall to approximately $54 billion in 2025, just half the level seen a decade ago, according to the International Energy Agency’s latest outlook, Trend reports.
The sharpest drop is in greenfield projects, which are expected to account for less than 20% of upstream spending, down from around 50% in 2015.
Russia continues to dominate the region’s upstream sector, accounting for roughly 75% of total investment. However, the country’s oil and gas industry faces growing pressure from a combination of low oil prices, higher taxes, and a tightening web of international sanctions. In January 2025, the United States announced new sanctions targeting Gazprom Neft, Surgutneftegas, Russian insurance companies, and 183 tankers involved in circumventing price caps.
The sanctions have further restricted Russia’s access to foreign capital, advanced drilling technology, and international partners — factors that have significantly constrained its ability to launch new projects. As a result, Russian companies are prioritizing cheaper brownfield developments and scaling back on expansion plans.
Rosneft, Russia’s largest oil producer, recently confirmed that first production from its flagship Vostok Oil project will be delayed by two years, now expected in 2026. The decision reflects not only difficult market conditions and sanctions but also the departure of foreign partners and lack of essential equipment.
While the Russian oil and gas sector has shown resilience, the IEA warns that limited transparency — with many companies exempt from disclosure rules — adds to the uncertainty surrounding future investment. Nonetheless, the current trend underscores a broader shift away from new exploration in Eurasia, even as fossil fuels continue to dominate the region’s energy landscape.
