Russia and Energy Transactions in Northeast Asia

Abstract

In Northeast Asia, Russia is a significant supplier of energy resources to neighbouring regional states, such as China, Japan, and South Korea, which have become net importers of energy resources. Under the Russian plan to develop the Russian Far East, the country has begun to increase its oil, gas, and coal exports to Pacific-rim countries. While Russia seeks to expand its energy exports, which forms a foundational part of its Far East economy, Russia’s energy exports are not always as competitive against other suppliers in Northeast Asia, especially when taking into account such issues as logistics and infrastructure. Additionally, there are also factors operating in the East Asian states that may not seamlessly facilitate the increase of import of energy resources from Russia. This chapter seeks to examine the weaknesses in Russia’s plans as an energy exporter, and what domestic political and economic actions the three Northeast Asian countries need to undertake with regard to their energy consumption.