The bill was passed by the State Duma on October 22, 2004, and it was approved by the Federation Council on October 27.

The Kyoto Protocol to the United Nations Framework Convention on Climate Change is an international agreement setting targets for industrialized countries to cut greenhouse gas emissions in 2008-2012. This is a pilot project aimed at introducing new economic mechanisms - tradable quotas and joint implementation - to reduce greenhouse gas emissions within a five-year period.

To come into force, the protocol must be ratified by at least 55 countries representing 55 percent of the total emissions in 1990. After the United States and a number of other countries refused to ratify the treaty, Russia’s support became crucial. As of now, 124 countries have ratified the Kyoto Protocol, but they only represent 44.2 percent of the total emissions. The treaty comes into force automatically after it is ratified by Russia, accounting for 17.4 percent of the total emissions.

At the same time, the ratification of the Kyoto Protocol will lead to additional costs for Russia. The bulk of measures to cut greenhouse gas emissions will be included in the government program “Energy effective economy” for 2002-2005 and through 2010.

Meanwhile, according to forecasts for Russia’s economic performance, carbon dioxide emissions in Russia will exceed 1990 levels before the end of the first phase of the Kyoto Protocol in 2008-2012. Russia’s financial losses resulting from the ratification of the treaty could total tens of billions of dollars during the first phase of the treaty, and in further periods - hundreds of billions of dollars.

Additional funds will be needed to implement preventive measures to adapt the country’s economy to climate change and create a system for emission monitoring and control, including RUR 20m in one-time expenses in the first two years after ratification, RUR 20m in annual expenses, and an additional RUR 20m a year starting in 2008. Russia will pay another $150,000 to the Kyoto Protocol’s budget, for administrative costs.

The Bush administration refused to sign the Kyoto Protocol in 2001. Australia did not hurry to join the treaty, either. Both countries are actively involved in the settlement of the Iraqi crisis, sidelining other international problems. However, thanks to Russia, the Kyoto Protocol came to the foreground again.

After the treaty comes into force, many national governments will find themselves in an awkward position. Countries that will fail to meet their obligations will face international sanctions in 2010. According to the protocol, the European Union countries will have to reduce their greenhouse gas emissions by 8 percent, which is hardly realistic, according to the Western media. However, the United States and Australia, which will find themselves in isolation once the Kyoto treaty comes into force, will face the greatest difficulties.

It is difficult to say how beneficial the treaty will be for Russia. Western analysts say the ratification of the document will bring economic benefits to Russia, and it will help Russia join the WTO. But Russian analysts expect significant financial losses and economic slowdown.