Decoding the Russian Energy Strategy in Asia (


In recent China visit, Russian President Vladimir Putin has signed a contract with China Energy billion worth hundreds along with the construction of gas pipeline after more than a decade of negotiations.

This may be one of the first agreement in the region that Putin is “the east” to help Russia have more export markets outside Europe and from the limited influence of Western sanctions related Ukraine crisis.

Risk may be shared European energy market, because the gas can be delivered to North America from Europe in the next 10 years, Moscow is headed for the Asian market, where the demand for imported energy is growing quickly. “Companies of Japan, India and South Korea are increasingly interested and want to participate in energy deals with Russia. Strategically, it is easy to understand “- Kyle Davis, an energy expert at the law firm Goltsblat BLP, said.

Late last April, the Russian parliament voted through the decision to remove 90% debt DPRK and U.S. $ 1 billion investment in the areas of health, education and energy in Korea, marking the return powerful of the Russian economy. Energy projects have been planned can be a gas pipeline passing through North Korea.

Moscow also plans to build a gas pipeline parallel to the railroad from Russia’s Sakhalin Island north of Japan’s past, through Korea to South Korea.

“It is clear that the biggest risk in this project is the issue of the Korean Peninsula. Present South-North relations are not reliable enough to build a pipeline of large-scale energy”, Chris Faulkner, CEO Breitling’s energy company headquartered in Texas said. Expected that this pipeline will provide South Korea 10 billion m3 gas / year. This will help Korea become “Ukraine in Asia” and South Nations like European dependence on Russian gas. South Korea imports 97% of energy demand, the importer of natural gas in the world’s second largest after Japan.

Russia and India is negotiating to build an oil pipeline worth $ 30 billion – the world’s most expensive pipeline having to go through complex terrain.The so-called pipeline “Silk Road” will link mountainous Altai region of Russia to the Xinjiang province of China and northern India.

According to the U.S. Energy Information Administration (EIA), India is the third largest oil importer in the world after the U.S. and China, and currently relies heavily on imports from the Middle East. It is expected that India will become the largest oil importer in the world in 2020. Like China, energy consumption in India has more than doubled since 1990.’s No surprise that India wants ensure additional energy imports and to diversify energy supplies from Russia.

Russia and India have discussed the construction project pipeline for quite some time. Indian Prime Minister Manmohan Singh and President Putin issued a joint declaration in Moscow dated 10.21.2013 confirmed that the two countries are working “to investigate the possibility of underground hydrocarbon transport directly” between two water. talks about the construction of the pipeline is expected to end by mid this year and be completed in time from 2020 to 2022.

However, according to The Economist magazine, China is still the best prospects of Russia, the consumption of oil and gas is expected to increase nearly 90% over the period 2011 to 2020, while India is expected to increased by about 50%.

“When gas pipeline under construction in China, Russia has few export markets outside Europe, so will not be affected by the sanctions of the West and can compete with gas stone U.S. exports blade. Putin knows this,” Faulkner said.

Article Author: Cong Thuan (BI)

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