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Critical evaluation of energy relations between Russian Far East and Asia (China & Japan) post 2000 - Dissertation Example

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Critical evaluation of energy relations between Russian Far East and Asia (China & Japan) post 2000 Introduction Russian energy policy between 1991-2000 Russia with a huge resource base of oil and natural gas occupies a position of international importance in the global energy sector…
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Critical evaluation of energy relations between Russian Far East and Asia (China & Japan) post 2000
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Download file to see previous pages During the period of the 1990s the government of the country did not directly control the large number of oil resources and industries in Russia. Rather big business tycoons who maintained a strong relation with the Russian Government officials controlled these industries. The Russian government during the period ranging from 1995 to 2000 endeavored to take decisive steps to bring about reforms in the country’s energy policies, which failed to get fulfilled owing to poor performances of the Russian economy. However the gradual revival of the economy after the 1999 period led the Russian government formulate an energy strategy till the 2020 period. This strategy aims at augmenting the supply of energy to meet the global demand. Further, the strategy aims at reducing the dependence of natural gas from around 50 percent during the 1990 period to around 42 percent during 2020. Rather the strategy focused on increasing the share of coal in energy generation from 16 percent in 1998 to around 23 percent during 2020. These policy directions along with focus on nuclear energy generation are expected to draw huge investments of around $700 billion by the 2020 period (Woehrel, 2009, pp.1-2; Russian Energy Survey, 2002, p.23). Russia’s Energy Policy towards China and Japan post 2000. In the field of energy development, the two countries Russia and China started their cooperation from the period of the late 1950s with Russia rendering technological knowhow for developing the oil industry in China. With the emergence of the 1990 period several government and energy agencies in both countries figured the laying down of gas pipelines between themselves as a feasible idea. With the signing of the ‘Treaty of Friendship’ during 2001 the expectation of energy collaboration between Russia and China gained further ground. The directions took shape under Vladimir Putin’s leadership after the 2001 period with the decision taken by the two countries to construct a joint pipe line for transmitting oil. Exports of oil by Russia to China augmented through different routes from 3 million in 2002 to 16 million during the period of 2006. This clearly reflects the growing interest of Russia on exporting oil to China which gained growth after the 2005 period. The construction period for the gas pipeline laid at 2008 failed owing to failure of price agreements between Russia and China. During 2006, Putin further announced the extension of gas resources to China along the Serbian border. (Eder, Speed & Korzhubaev, 2009,pp.219-2224, 240-242). The energy policy of the Putin government became an area of higher influence by the Japanese diplomats in trying to get the best out of it. The Japanese diplomats desired the map for the oil pipeline to be set from Angarsk to Nakhodka which would be beneficial to the Japanese region. Japan considered the above move a strategic importance for it would reduce their dependence on oil resources of the Middle East and also strengthen its relationship with Moscow (Amalia, 2006.p.3, 7). Trend of Energy Uses in China and Japan The advent of China in the World Trade Organization augmented the country’s use of energy resources, which gained growth at the rate of 71.5 percent during the period ranging from 2001 to 2006. The region of China during the period of 2003 consumed around 31 percent of the total coal energy in the world. Further, China accounted for 7.6 percent of the global oil consumption and ...Download file to see next pagesRead More
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