Russia's evolving energy policy for its eastern regions, and implications for oil and gas cooperation between Russia and China

Abstract

key ideas: Russian hydrocarbon sector (especially oil) has moved from privatization (1992-1996 - oligarchs in power & SR business interests dominate) to state control under Putin - increase power of SOEs. Putin wanted to establish a tight control of the oil & gas sector that supports Russia's development & limtis foreign investment of the oil sector (under 50%). Sino-Russian relationship fell under the precarious gap in changes of Russian oil & gas sector governance from privately negotiated relations with Yukos to deals with SOEs & Govt constrains on ownership in Slavneft. Gas sector, Gazprom dominates and China does not require that much gas to make pipeline and gas exports central to Russia-China energy relations. Interesting discussion about ownership of Kovyatka field, which is stuck btw. Gazprom, TNK0BP and BP. Governments has increased taxes & state control over the projects & sectors perfomrance.