The 'Oil Friendship’: the state of and prospects for Russian-Chinese energy cooperation
The 'Oil Friendship’: the state of and prospects for Russian-Chinese energy cooperation

Author(s): Marcin Kaczmarski, Szymon Kardaś
Subject(s): Energy and Environmental Studies, Economic policy, Environmental and Energy policy, International relations/trade
Published by: OSW Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: Russian-Chinese energy cooperation; energy policy
Summary/Abstract: The oil sector has been the major element of Russian-Chinese energy cooperation. The years 2013–2015 saw a significant increase in the volume of crude oil exported by Russia. In 2015, China became the main importer of Russian oil; Russia became the second largest supplier of oil to the Chinese market, after Saudi Arabia. From Beijing’s perspective, supplies of Russian oil are of strategic importance because the main supply routes are overland routes. Russia, for its part, is interested in boosting its export because of its deteriorating position on the European market, which hitherto has been considered a strategic market.Cooperation in the field of natural gas has been less advanced; so far Russia has exported only insignificant amounts of liquefied natural gas (LNG) to China. China is less dependent on the import of gas (its own production covers around 70% of the demand). Beijing has been dynamically developing its LNG infrastructure, and has at its disposal gas pipelines which connect China with producer countries in Central Asia. Additionally, all the projects carried out within the framework of Russian-Chinese gas cooperation are being hampered by the financial problems Moscow is experiencing.

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