Energy Relations Between Russia And China

This report makes the point that in both Russia and China it is politics ââ¬" and not market or commercial considerations ââ¬" that largely drive energy relationships with each other and the outside world.à For both countries, energy and energy security is regarded as a strategic asset and/or objective that are at risk from outside forces.à The conditions that each state has attached to their energy policies ironically preclude the kind of easy cooperation seen in other strategic and political issues between Moscow and Beijing. In both Central and Northeast Asia, Russia has blocked Chinese efforts to realize its version of energy security, yet it has not been able to come up either with the resources or means for a coherent policy of supplying China with reliable quantities of energy that would lead China away from non-Russian producers.à The under-fulfilment of the potential for Russia to supply China will continue and continue as well to be a source of strain in their relationship.

This report makes the point that in both Russia and China it is politics - and not market or commercial considerations - that largely drive energy relationships with each other and the outside world. For both countries, energy and energy security is regarded as a strategic asset and/or objective that are at risk from outside forces. Moreover, both countries are taking a statist - in Russia even patrimonial - approach to energy issues. Therefore cooperation between Russia and China will be difficult even though Russia wants to sell and China wants to buy. The conditions that each state has.

This book examines Russia's new assertiveness and the role of energy as a key factor in shaping the country's behavior in international relations, and in building political and economic power domestically, since the 1990s. Energy transformed Russia's fortunes after its decline during the 1990s. The wealth generated from energy exports sparked economic recovery and political stabilization, and has significantly contributed to Russia's assertiveness as a great power. Energy has been a key factor in shaping Russia's foreign relations in both the Eurasian and global context. This development raises a host of questions for both Russia and the West about the stability of the Russian economy, how Russia will use the power it gains from its energy wealth, and how the West should react to Russia's new-found political weight. Given that energy is likely to remain at the top of the global political agenda for some time to come, and Russia's role as a key energy supplier to Europe is unlikely to diminish soon, this book sheds light on one of the key security concerns of the 21st century: where is Russia headed and how does energy affect the changing dynamics of Russia's relations with Europe, the US and the Asia-Pacific region. This book will be of interest to students of Russian politics, energy security, international relations and foreign policy in general. Jeronim Perovic is a senior researcher at the Center for Security Studies at ETH Zurich. Robert Orttung is a visiting scholar at the Center for Security Studies at the Swiss Federal Institute of Technology (ETH) in Zurich and a senior fellow at the Jefferson Institute. Andreas Wenger is professor of international security policy and director of the Center for Security Studies at ETH Zurich.

Relations between China and Russia have evolved dramatically since their first diplomatic contact, particularly during the twentieth century. During the past decade China and Russia have made efforts to strengthen bilateral ties and improve cooperation on a number of diplomatic fronts. The People's Republic of China and the Russian Federation maintain exceptionally close and friendly relations, strong geopolitical and regional cooperation, and significant levels of trade. In The Future of China-Russia Relations, scholars from around the world explore the current state of the relationship between the two powers and assess the prospects for future cooperation and possible tensions in the new century. The contributors examine Russian and Chinese perspectives on a wide range of issues, including security, political relationships, economic interactions, and defense ties. This collection explores the energy courtship between the two nations and analyzes their interests and policies regarding Central Asia, the Korean Peninsula, and Taiwan.

Fifteen years have passed since China and Russia formed a 'strategic cooperative partnership' in 1996, and 2011 marks the 10th anniversary of their 2001 Treaty of Good-Neighbourliness and Friendly Cooperation. Considering the significant changes that have taken place in China and Russia over this period, it is well worth assessing the meaning of the China-Russia 'strategic partnership' and their declared 'good-neighbourly' relations. The 'strategic partnership' falls short of the aspirational official rhetoric of both sides. There are three common threads in the views of Chinese policymakers and analysts regarding the China-Russia partnership: pragmatism, lack of political trust and the US factor. While some of the grander expectations of China-Russia relations are unlikely to develop, the two countries will nevertheless avoid antagonizing one another and will find common interests in a stable relationship. The relationship may encounter tension over specific issues, but it is relatively resistant to long-term damage because of the pragmatism of both parties and the willingness to discuss differences behind closed doors. China and Russia will continue to be pragmatic partners of convenience, but not partners based on deeper shared world views and strategic interests. In the coming years, while relations will remain close at the diplomatic level, the two cornerstones of the partnership over the past two decades -- military and energy cooperation -- will continue to crumble. As a result, Russia's significance to China will continue to diminish.

Russia is the world's biggest hydrocarbon producer. China is one of the world's largest and fastest-growing energy markets. The two are neighbours. Yet their energy relationship is very thin. Instead, they compete for vast and largely unexplored Central Asian resources. As Kazakh oil and Turkmen gas start flowing to China, Russia's traditional dominance in the region is diminishing. However, the Central Asian states are not passive pawns in a new 'great game'. The EU and the US can help these countries to turn the new energy geopolitics to their advantage.

​As China rises to global power status, its relations with other major powers, including Russia, are constantly renegotiated. Energy figures prominently in both countries’ foreign policy. An extensive analysis of Chinese language sources – academic debate 1997-2012 – confirms a collision of interests over Central Asian reserves. While unanimous appeals to compromise render previous predictions of impending confrontation unconvincing, descriptions of Sino-Central Asian energy relations as “central to energy security”, and the explicit rejection of a Russian “sphere of influence”, also exclude a retreat. In the long term, China will likely replace Russia as the dominant force in Central Asia’s energy sector, causing the Kremlin to perceive another “encroachment”. The current notion of a “strategic partnership” will inevitably be challenged.​