Russo-Asian Politics

Not only is Asia fast becoming a major player in the Oil & Gas industry, it is already a major consumer, and Russia is keen to increase its exports of coal, oil, gas, gold and copper from East Russia to the Asian market. In fact, so eager is the Russian government to encourage energy trade links with Asia, that it has begun to offer fiscal incentives to those companies involved in the development of infrastructure in east Russia to facilitate resource exports. 

Moreover, Russia will, for the first time, allow other Russian companies to export LNG to the Asian market, breaking Gazprom's monopoly. This will allow more Russian natural gas to be exported further, since natural gas in its liquid form no longer has to be transported by pipeline. Mr. Dvorkovich explained that although Russia would continue to deliver gas to Europe, Russia sees greater prospects in Asia. 

According to Russian officials, this pivot has resulted, in part, because of increased  regulatory pressures in the European market, combined with falling European demand. Having signed a number of gas supply deals with China, it is clear that for Russia, future successes lie in Asia. The biggest deal to date, estimated at around $270 billion, CNPC (China National Petroleum Corporation) made a pre-payment to Rosneft of around 70 billion in return for a supply of 365 million tons of oil over 25 years. 

Russia have also signed a new deal with Japanese Sakhalin Oil and Gas Development Company and the Japanese trading firm Marubeni. The Diplomat hails this as the start of energyand political relationship between the two nations.