Russia Influence in the Asia Pacific Region - Case Study Example

Assess whether Russia been successful in using its resources to maximise its influence in the Asia-Pacific The economy of Russia is indeed suffering, and its status as a superpower region has diminished- status enjoyed by the Soviet Union in previous years. Due to the introduction of new political issues, Russia’s economy has been trending downward, and exercising foreign policy with Asian countries is not an easy task. On the other hand, countries located in East Asia are leaning more and more towards democracy. It must be noted that in order to describe a nation as being powerful, there are a number of factors that have to be considered. The power of a nation has been said to be characterized with richness in human and natural resources, a stable political climate, effectiveness of political authority, geostrategic position, the influence of the military, the strength and the wealth of the economy, and the ability of the nation to keep up with technological development. In Asia, two countries can be said to be among the world’s powerful leaders. These are Japan and China (Ziegler, 1994). This paper shall be about the ability of Russia to influence areas in the Asia-Pacific region, with regards to the development of their energy resources and exporting these to areas in the mentioned region. The writer was able to successfully gather information about the development of Russia’s energy resources for the benefit of other countries (particularly those in the Asia Pacific). However, precise information on whether Russia has been successful in influencing these countries remains to be a question still. So far, it seems that Russia is well on its way to achieving its goal as long as it is aware of what needs to be done. The demand for energy in Asia increased four- fold between the years 1971 t0 1995. And it has also increased by four percent every year since then to the present year, 2010. Such increases in the need for energy has been quite detrimental for Asian countries, especially the industrial sector. This of course, has also affected Asian-Pacific countries in terms of energy supply and the environmental problems that they face. Japan has been one of the countries in the Asia-Pacific that has been experiencing such problems, and in fact, its economic growth has also been affected due to the energy sources that it imports. If the economic well-being of Japan shall suffer, so shall the progress of other countries in Asia. As such, there is indeed a need to solve the problem of shortages in supply and the instability of the economy. One of the reasons why Russia influence in the Asian region is questionable because of the different perception’s of the country. It has been said that the perceptions between countries in Northeast Asian region and the Southeast Asian region differ from each other. For instance, countries located in the Southeast Asian region view Russia as a superpower with whom they would want to establish a relationship with. However, in Northeast Asia, Russia is considered to be part of ‘tangible strategic interests and challenges.’ One of these challenges include the conflicts between Northern Territories with Japan and the events that have happened in Korea. Northeast Asia also acknowledges the success of foreign policy in the Asia-Pacific region, with the focus being on the establishment of Russia’s ‘strategic partnership’ with China. Researchers agree that by helping develop the economy in Russia Far East, then it would be easy for Russia to establish itself in the Asia-Pacific region. Of course, it helps that the energy resources provided by Russia can indeed decrease the dependency that countries in the Asia-Pacific hold with the Middle East. One of the challenges is that the unstable and unpredictable situation in Russia’s relationships with the Asia-Pacific area reduces the appeal that Russian resources have to these countries (Watanabe, 2010). When the Soviet Union collapsed, Russia has held a ‘geopolitical significance’ in Asia, with the focus being on the Far East. It so happens that the Far East also occupies a portion of the Russian territory- approximately one third of it. Asia also enables Russia to be able to gain access to the seas, since their access to the Black Sea has been limited since the independence of Baltic States and Ukraine. One of the reasons why Russia has been interested in the Asia-Pacific region is due to the increase in the economic growth in the said area. This is why Russia has been keen to establish relationships in business and trade with countries in the Pacific. This has especially come to manifest since the year 1992, when a large number of economic programs implemented by Russia involved the inclusion of the Asia-Pacific region among their priorities. However, one of the biggest problems encountered by Russia would be the issue of political risk, which has proven to be one of the greatest and most challenging obstacles when dealing with foreign investments in resource development projects in the country. Because of such political risks, there is also a chance that industrial strikes would occur, in turn affecting the flows of energy, human resource and finances. Political issues may also increase the chances of ‘resource nationalism’ occurring and there may also be changes that may occur with regards to the balance of authority between the local governments in the country and Moscow. In fact, the government system itself may change as a result. Despite such risks, there are still a large number of advantages that will occur if Russia continues to use its resources in influencing the Asia-Pacific region. One such advantage is that the latter region would not be so dependent on Middle Eastern oil anymore, and they would also be less dependent on the nuclear power provided by Japan (which is not as reliable as would be expected). Asia-Pacific countries would also be grateful for the fact that Russia’s supply of natural gas, as opposed to coal and oil will contribute to reducing the damage brought to the environment. Ultimately, the establishment of resources trade between Russia and Asia would mean that Asia need not worry about energy supply shortages. Russia, on the other hand, would be able to utilize the profits that they make from their resources export by helping their fellow countrymen who are experiencing poverty. In addition, the profits can also help to contribute to Russia’s capital and technological investments in various projects that would help reverse their economic misfortune, their depopulation, business bankruptcy rate and unemployment rate (Mito, 2000). One way in which Russia can strengthen its influence in the Asia-Pacific region would be to develop the ESPO (Eastern Siberia Pacific Ocean) pipeline project, which will in turn help further the development of the oil production in East Siberia. The said pipeline is being constructed by the Russian company Transneft, and the construction process started in the year 2006, in the month of April to be exact. According to the schedule, the construction of the said pipeline was said to be accomplished by the year 2008 (Itoh, 2005). Unfortunately, the construction of the pipeline has fallen behind schedule and the completion of the said project has been readjusted to 2009. Phase two of the construction of the pipeline has been planned to be accomplished between the years 2012 and 2014. Russia has also been planning to develop even more outlets for its crude oil reserves and the ESPO pipeline is considered to be the main gateway for this to happen. Other plans include the joining of the Omsk-Irkutsk pipeline at Taishet and the distribution of supplies from provinces located in Eastern Siberia. When the pipeline has been accomplished, it has been planned that 22 million tonnes of oil should be supplied by Rosneft and another eight million tonnes should be supplied by Surgutneftegaz. The first phase of the construction of the ESPO pipeline is said to benefit countries in the Asian-Pacific region such as China. In fact, the first phase consists of a 48 inches pipeline (in diameter), which has the capacity to transport at least 80 million tonnes of crude oil every year. 32 pumping stations are also expected to be constructed along the route, including another 13 stations with tank farm storage. One of the main reasons why Japan became part of Russia’s clientele when it comes to crude oil is because of its potential to eliminate what has been termed as ‘Asian Premium’ on crude oil that has been imported from the Middle East. In other words, Russian crude oil is much cheaper than its Middle Eastern competitors (Watkins, 2010). Undoubtedly, Russia indeed has the potential to increase its influence in the Asia-Pacific region by increasing its energy supplies, according to its national energy strategy. The ability of Moscow to attain superior status did not really require a set of economic policies to increase developments in hydrocarbon resources by investing in new technologies and various infrastructures. In order to increase further influence among the Asia-Pacific region, Russia has in fact tried to avoid as much foreign influences. It cannot be foretold whether Russia is capable of shipping huge amounts of crude oil and natural gas to markets in the Asia-Pacific region. This is why there is a need to lookout for the perfect time in order to do this, especially for the development of East Siberia. There is also a need for the country to constantly be updated with the energy demands of countries in the Asia-Pacific region. For instance, it has been predicted that in Japan, the energy consumption of the Japanese people shall increase between the years 2014 to 2026. Thus, in order for Russia to continue strengthening its influence over countries in the Asia-Pacific region, there seems to be a need for the country and the authorities to take note of their schedules for carrying out certain development activities. This way, countries in the Asia-Pacific region need not turn to other countries (such as the ones located in the Middle East) for their energy needs. Conclusion From the very beginning of this paper, the writer made it clear that the main purpose of this study is to find out whether Russia is able to hold a positive influence over the Asia-Pacific region. In the past, areas in the Asia-Pacific, and all over the world for that matter, have been extremely dependent on the energy resources of the Middle East. This is a problem because the energy resources of the Middle East are depleting, and tremendous costs are being spent in order to transport their resources to other parts of the world. One of the ways in which Russia has strengthened its influence over the Asia-Pacific region, is through the development of the East Siberian Pacific Ocean (ESPO) pipeline project, which does not only help transport energy resources to various regions, but also to help increase oil production in East Siberia (Itoh, 2005). However, the development of the pipeline project has been delayed, and so has the development of Russia’s influence over countries in the Asia-Pacific. Thus, there is a need for Russia to speed up its development projects, in order to avoid the Asia-Pacific from relying on the Middle East again. Of course, the other problem that has to be addressed is the development of the relationships between Russia and countries in Asia. So far, there has been much hesitance on Asian governments to not depend so much on Russia because of historical conflicts. As such, Russia should take the initiative to look for other ways on how they can further gain the trust of the Asian region. References Cui, X. (2003) Mianxiange Ershiyishijide Zhonge Zhanlue Xiezuo Huoban Guanxi [Sino-Russian Strategic Cooperation Partnership toward 21st Century], Beijing: Zhonggong Zhongyangdang Xuexiao Chubanshe, 2003. (in Chinese) HydroCarbons-technology.com (2002) ESPO Siberia, Russia. Retrieved on March 31 2010 from http://www.hydrocarbons- technology.com/projects/espopipeline/ Itoh, S. (2005) Russia’s energy diplomacy toward the Asia-Pacific: Is Moscow’s ambition dashed? Retrieved on March 31 2010 from http://src-h.slav.hokudai.ac.jp/coe21/publish/no19_ses/2_ito.pdf Mito, T. (2000) Japanese energy security and changing global energy markets: An analysis of Northeast Asian energy cooperation and Japan’s evolving leadership role in the region, Japan’s energy strategy, Russian economic security and opportunities for Russia energy development, major issues and policy recommendations, The James A. Baker III Institute for Public Policy of Rice University. Watkins, E. (2010) Chinese progress with construction of ESPO pipeline extension. Oil and Gas Journal. Retrieved on March 31 2010 from http://www.ogj.com/index/article-display/6048751899/articles/oil-gas- journal/transportation-2/chinese-progress_with.html Watanabe, K. (2010) Engaging Russia in Asia-Pacific. Retrieved on March 31 2010 from http://www.jcie.or.jp/books/abstracts/E/engaging.html Ziegler, C.E. (1994) Russia in the Asia-Pacific: A major power or minor participant. Retrieved on March 31 2010 from http://www.jstor.org/pss/2645339 Read More