The purpose of this article is to review and explain Russia's positions in the climate negotiations and point to future challenges for Russia in the climate regime. Russia appears to become a large beneficiary of the trading system created by the Kyoto Protocol. The current allocation of quotas under the protocol will probably create substantial revenues for Russia, and it could also help attract foreign investment to its poorly maintained power and industrial sectors. Russia's positions in the international negotiations have changed as these potential benefits for the country have become apparent. However, although the Kyoto regime, if it enters into force, will mean new and additional revenues for Russia, there are several factors that might prevent Russia from reaping the full benefits created by the Kyoto Protocol.
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