Sino-Russian Energy Relations: Dimensions and Prospects

Access and control of Energy has not only been historically instrumental in the sociopolitical and economic shaping of nations, but also central to the global world of politics, systems, and geopolitics. Energy resources of the Russian Federation have made the country more influential in world politics. Energy and geopolitical issues are especially important to modern People’s Republic of China as a tool for the country’s economic growth. Since the mid twentieth century, both countries have attempted to establish mutual energy cooperation as a key component of their strategic alliance based on producer-consumer needs and the Good Neighborly Treaty. Nonetheless, since the end of the cold war in the 1990s, the energy negotiations have been long and unproductive because both nations are on both sides of the energy market. For the Russian Federation, revenue from its oil and gas sector traditionally makes up a large portion of its budget. Thus, Russia is unwilling to make concessions and involve China in its major upstream energy projects. In the interim, China also seeks to diversify its oil and gas resources and imports for its own political dependency, growth, and to prevent countries from overreliance on one single source and market. Issues such as pricing and the provisions of agreements have made the energy relations between the two countries more complex than the relations between producers and consumers. Despite the two countries being neighbors, their relations have not been developed.