The COVID-19 pandemic has caused unprecedented changes to the global economy and has thoroughly shaken the energy industry. The recent collapse of oil prices has underlined the fragility of the fossil fuel sector and has emphasized the importance of economic and fuel diversification. Considering the overwhelming role that fossil fuels and fossil fuel-driven industries play in Russia’s economy, particularly their prevalence in the Russian Arctic region, this sectoral shock should come as a wake-up call for the country to reconsider its strategy and the role that decarbonization and renewable energies need to play in it. The long-term sustainability of the economic development of the Arctic regions will be influenced by global environmental and climate regulation, as well as the ongoing transformation of energy markets. More robust incorporation of RES would not only provide a more sustainable route for the economic development of the region, but it would also deliver significant health benefits for local populations and regional flora and fauna. This becomes especially important as studies have been showing a correlation between poor environmental factors and viral susceptibility. As more and more of Russia’s economic partners are stepping on the path of carbon neutrality and increasing their goals to reduce emissions through improved energy efficiency measures and integration of green energy sources, Russia should strongly consider embracing these global trends and begin incorporating the necessary policy changes in order to stay relevant and competitive in the long-term. Now is the perfect time to adopt the necessary incentives and prioritize resilient investments to begin changing the country’s economic structure to help drive the country towards overcoming future economic and climate challenges and turn some of these potential challenges into growth opportunities.