The article analyses the challenges that oiland- condensate production in Russia is currently facing. Russia still has enormous resource potential to produce oil and other liquid hydrocarbons for many years to come. However, the quality and attractiveness of resources are changing quite substantially and rapidly. To sustain a high level of production and export, Russia needs to develop new remote oil fields and deeper layers of existing ones. The high level of production requires much more investment than before and the use of new technologies. This strategy requires a new institutional regime and much better investment conditions for private players. To diminish rising risks, Russia is developing the Eastern route for supplying oil and hydrocarbons. Nonetheless, in the foreseeable future Europe will continue to be the main market for Russian exports of hydrocarbons (as Russian oil companies own thirteen refineries across Europe), and all infrastructure is still oriented in this direction.