Russia is a major producer and exporter of oil and natural gas and its economy largely depends on energy exports. Russia's economic growth continues to be driven by energy exports given its high oil and gas production and the elevated prices for those commodities. Internally, Russia gets over half of its domestic energy needs from natural gas.

Russia was the world's second-largest producer of oil (after Saudi Arabia) and the second-largest producer of natural gas in 2011 (second to the United States). However, preliminary data through June 2012 indicate that Russia had surpassed Saudi Arabia as the top crude oil producer in four out of the six months.

Russia's oil and gas sector continues to be affected by high taxes and export duties. While export duties for crude oil and petroleum products were lowered to 60 and 65 percent, respectively, in 2011, producers still face high mineral extraction taxes and a revenue-based tax system.

Russia's proven oil reserves were 60 billion barrels as of January 2012, according to the Oil and Gas Journal. Most of Russia's resources are located in Western Siberia, between the Ural Mountains and the Central Siberian Plateau and in the Volga-Urals region, extending into the Caspian Sea. Eastern Siberia holds some reserves, but the region has had little exploration.