In 2013, oil production in Russia reached its highest level since 1990 while exports of crude oil and refined products reached its highest-ever level in response to high prices of crude oil in global markets. However, a trend towards slower growth rates and worsening of oil and gas production conditions was observed. The recently adopted laws and regulations concerning tax incentives for the development of new oil and gas fields and hard to recover reserves, liberalization of export of liquefied natural gas, as well as a long-term gas contract with China, create conditions for further development of the Russian oil and gas sector.