The Diplomat: A Russian Perspective on China’s Arctic Role
On September 1, Russian President Vladimir Putin and Chinese Vice Premier Zhang Gaoli launched the construction of one of the largest joint gas projects in the world – the Sila Sibiri (Power of Siberia) pipeline. The pipeline will deliver gas from Siberia in the Yakutia Republic (Chayandinskoye field) and Irkutsk region (Kovyktinskoye field) to China and Russia’s Far East. Putin has also announced the possibility of Chinese companies joining in the exploration of Rosneft’s biggest production asset, Vankor Field, from which gas is delivered to China in line with the accord signed between Rosneft and the China National Petroleum Corporation (CNPC) in 2013. Earlier this year, privately owned Russian gas producer Novatek signed a deal with CNPC for the annual delivery of three million tons of liquefied natural gas from their joint Yamal LNG project for the next 20 years. Rosneft is also negotiating a joint exploration of the Barents and Pechora Seas’ shelves with CNPC.
In recent years the Russian government has been reluctant to allow Chinese companies to take a stake in Russian oil and natural gas fields. However, with a changing geopolitical situation, marked by highly tense relations with Europe over Ukraine and China’s transformation into the world’s second largest economy, the Russian state seems to be making its own pivot to Asia. Therefore, joint Sino-Russian energy projects, particularly in the Russian part of the Arctic, are becoming an area for strengthening bilateral cooperation. For Russia this collaboration may help to improve two crucial issues: increased energy security and strengthening economic cooperation with the Asia Pacific. For China this will ensure diversification of its oil and gas imports and help supply its growing energy demands. Such initiatives are also backed by the Russian energy companies Gazprom, Rosneft and Novatek, which consider energy cooperation with China a way to diversify their energy exports. However, there are a number of factors that will influence Russia’s position on China’s involvement in the High North.