Russian Federation — The Hidden Hydrogen Giant
Based on the Presentation by Mr. Mikhail Berkutov, Consul General of the Russian Federation in Ho Chi Minh City,
at the Seminar “Hydrogen Gas Injection Technology for Internal Combustion Engines – Reducing Fuel Consumption and Emissions”
organized by VAHC Club and UEF University, September 16, 2025.
Mr. Mikhail Berkutov, Consul at Russian Federation Consulate General in HCMC
Opening – First Impressions and Context
Mr. Mikhail Berkutov’s presentation made a powerful impression right from the start for two main reasons:
(1) It offered a structured, data-driven picture of the Russian Federation’s hydrogen energy development strategy.
(2) Its core message — that Russia is preparing to become a major hydrogen supplier — surprised many participants, as global discourse in recent decades has paid far less attention to Russia’s hydrogen industry compared to its oil and gas sectors.
He placed hydrogen development within the framework of the “Concept for the Development of Hydrogen Energy in the Russian Federation” (Resolution No. 2162, 2021) and explained its strategic milestones in a clear timeline.
Main Content of the Presentation
1) National Policy Framework and Stage-by-Stage Targets
Mr. Berkutov summarized Russia’s national hydrogen strategy, setting targets for 2024, 2035, and a vision to 2050 — aiming to position Russia among the world leaders in hydrogen production and exports, while reducing carbon intensity and ensuring energy security.
The program is structured into three phases:
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Phase I (2021–2024): Launch of pilot projects, establishment of clusters, and pilot exports (target ~0.2 Mt/year).
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Phase II (2025–2035): Scale-up production, start of commercial mass production, exports in the range of 2–12 Mt/year depending on global demand.
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Phase III (2036–2050): Large-scale hydrogen exports, reaching 15–50 Mt/year under favorable scenarios.
These figures, as he emphasized, illustrate Russia’s ambition to transition from pilot-scale to full commercial deployment within two decades.
2) Russia’s Competitive Advantages
He listed several key factors that could make Russia a cost-competitive and large-scale hydrogen producer/exporter:
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Abundant, low-cost natural gas combined with significant renewable energy potential in many regions;
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Industrial expertise in methane conversion and electrolysis technology;
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Scientific and technical base with skilled human resources;
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Untapped electricity generation capacity that can be used for low-carbon hydrogen production;
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Strategic geography, with proximity to European and Asian markets — particularly the Russian Far East for Northeast Asia and Southeast Asia export routes.
According to him, if these advantages are leveraged through sound policies, infrastructure investment, and export promotion mechanisms, Russia could deliver competitively priced hydrogen to the global market (barring geopolitical risks).
3) Barriers and Challenges
Mr. Berkutov was forthright about the challenges, which strengthened the credibility of his talk:
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Current low-carbon hydrogen production costs remain high;
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Storage and transport technologies (especially for large-scale exports) are not yet fully mature;
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Limited domestic demand to absorb large production volumes immediately;
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Regulatory framework still needs standardization and safety norms;
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Investment capital is not yet sufficient for rapid scale-up.
By presenting both the potential and the risks, his argument came across as balanced and realistic.
4) Policy Measures and Proposed Actions
He outlined several strategic measures to overcome these barriers:
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Establishment of hydrogen clusters (similar to Japan’s Hydrogen Hubs) in key regions;
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Support for pilot projects and PPP models to attract private investment;
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R&D development and accelerated technology transfer;
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Development of safety standards and regulatory frameworks;
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Strengthened international cooperation and professional training.
These actions correspond closely to the three-phase roadmap: pilot → scale-up → large-scale commercialization.
Key Highlight: The Eastern Hydrogen Cluster and Sakhalin’s Role
A significant portion of the presentation was dedicated to the “Eastern Hydrogen Cluster” — which Mr. Berkutov positioned as the centerpiece of Russia’s strategy for the Asian market.
Key points included:
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Building a hydrogen industry in Sakhalin to export “hydrogen-containing mixtures” and support local consumption in energy, transport, and urban services;
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Aggregating resources to reduce transaction costs and create cost-effective, low-carbon hydrogen solutions;
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Developing related industries to drive deep processing of low-carbon energy value chains;
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Supporting the entire life cycle — production, storage, transportation, use — and piloting successful business models to stimulate market demand.
He stressed Sakhalin’s geographic advantage — its proximity to Northeast Asia, cold climate, and existing energy infrastructure — making it an ideal hub for hydrogen supply chains to Japan, Korea, China, and ASEAN markets.
Industrial and Transportation Applications
As a seasoned diplomat, Mr. Berkutov also illustrated very concrete examples of targeted hydrogen applications across the value chain:
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Hydrogen buses and trucks,
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Hydrogen-powered trains,
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Hydrogen fuel cell UAVs,
— highlighting the diversification potential for passenger transport, freight logistics, and even civil security/defense.
Export Logistics: LNG, Ports, and Fleet – A Strategic Argument
A compelling argument was his connection between Russia’s LNG export capacity and its potential to pivot towards hydrogen exports.
He argued that Russia’s long-standing experience in liquefied natural gas (LNG) exports, its port systems, and its large fleet of gas carriers could give it an edge in building hydrogen logistics (once technology for hydrogen or hydrogen-carrier transport is adapted).
He also pointed out that cold-climate production sites like Sakhalin may have specific advantages for shipping hydrogen or derivatives over certain distances to Northeast and Southeast Asia.
Expert Conclusion: Potential – But Requires Realism and Cooperation
In his conclusion, Mr. Berkutov delivered two parallel messages:
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Large potential and export ambition: If technical, financial, and market barriers are addressed, Russia can deliver hydrogen at large scale and competitive cost within the next decades — the staged figures (0.2 → 2–12 → 15–50 Mt/year) illustrating this trajectory.
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Need for international cooperation and robust policy frameworks: For projects to become commercially viable, PPPs, safety standards, workforce training, R&D, and legal consistency are required — opening the door for transparent and lawful foreign participation.
Sensitive Topic: Sanctions and Geopolitical Risks
During the Q&A (and in his slides), Mr. Berkutov acknowledged that political factors, sanctions, and trade risks could affect cross-border cooperation timelines.
He focused on the industrial and technological potential but refrained from recommending any circumvention of international regulations. He emphasized that all cooperation must undergo proper legal due diligence, respecting international and domestic law — a crucial message in today’s geopolitical climate.
Implications for Vietnam – Concrete Opportunities for Cooperation
Mr. Berkutov underscored that Vietnam is Russia’s comprehensive strategic partner in Southeast Asia — a fraternal partner for decades — and outlined several possible cooperation avenues:
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Investment and PPP: Participation in pilot projects or hydrogen clusters through joint ventures and PPPs.
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Technology transfer and joint R&D: Cooperation in electrolysis, methane reforming, hydrogen storage and transport, and workforce training.
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Hydrogen and derivative trade: Offtake agreements for hydrogen or hydrogen-containing mixtures once transport infrastructure is ready.
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Industrial base development: Building supply chains (electrolyzer stacks, storage tanks, logistics, specialized ships) and applying hydrogen in transport and industrial energy transition.
These opportunities were presented both as economic prospects and as strategic levers for Vietnam to diversify energy sources and enhance energy security.
Practical Recommendations for Vietnamese Stakeholders
Based on the slides and arguments, several practical takeaways can be drawn:
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Legal and political risk assessment: Carefully vet all agreements for compliance with sanctions and geopolitical considerations.
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Start with pilot projects: Focus on small-scale, cluster-based initiatives to demonstrate effectiveness before scaling.
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Develop technical and human capacity: Absorb technology via R&D partnerships and create training programs for technical standards and safety.
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Assess logistics and value chain feasibility: Evaluate shipping routes, port capacity, and optimal hydrogen products (e.g., hydrogen-containing mixtures) to minimize costs.
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Build multilateral and cross-sector links: Collaborate not only with Russian firms but also research institutes, equipment manufacturers, and standards bodies to ensure sustainability and compliance.
Conclusion – Overall Impression
Mr. Mikhail Berkutov’s presentation at the VAHC + UEF Seminar painted a strategic yet pragmatic picture: he showcased Russia’s national hydrogen ambitions (anchored by Resolution No. 2162/2021 and its three-phase roadmap), highlighted Russia’s geographical and technical strengths, and candidly acknowledged its barriers.
For Vietnamese policymakers and businesses, the message was clear: Russia has the potential to be a major hydrogen partner, but any cooperation must be built on a transparent legal framework and sound risk management.
Reference
Hydrogen Russia.PPTX — Presentation by the Consulate General of the Russian Federation (Mikhail Berkutov), Ho Chi Minh City, September 16, 2025.
For access to this material, please contact: contact@vahc.com.vn.
