Dr Vlаdimir Раrаmоnоv & Dr Аlеksеy Strоkоv: Struсturаl Intеrdереndеnсе оf Russiа & Сеntrаl Аsiа in thе Оil аnd Gаs SесtоrsНазад
Dr Vlаdimir Раrаmоnоv & Dr Аlеksеy Strоkоv: Struсturаl Intеrdереndеnсе оf Russiа & Сеntrаl Аsiа in thе Оil аnd Gаs Sесtоrs
Key Points
* The cooperation observed in recent years between Russia and the countries of Central Asia in the oil and gas sphere has its political origins in the following chain of events:
2000: the accession to power in Russia of Vladimir Putin;
2002: the creation of a gas alliance between Russia, Kazakhstan, Turkmenistan and Uzbekistan;
2003: the approval by the Eurasian Economic Community (EurAsEC) of the document "Principles of Energy Policy";
2006: Uzbekistan entry into EurAsEC.
* The fundamental economic basis for the development of cooperation between Russia and the countries of Central Asia, however, has been the legacy of structural interdependence between these countries in the oil, gas, water and electricity sectors bequeathed by the centrally-planned command economy of the Soviet Union.
* With the disintegration of the Soviet Union the central planning of economic activity disappeared, and nothing has yet been created in its place. The finely-tuned system of energy cooperation between the former soviet republics, developed over decades continues to be eroded, so that the structural interdependence between Russia and Central Asia in the oil and gas sectors is now much weaker than it was in Soviet times.
* In the future the development of cooperation between Russia and Central Asia in the oil and gas sectors will be influenced by competition between Russia and other external players, i.e. China, a number of Western countries and the international oil and gas companies.
* There is quite likely to be a clash of energy interests between Russia and China in Central Asia, and this could cause problems for international cooperation both in and around the region.
* In order to strengthen regional security and improve the effectiveness of international energy cooperation in Central Asia it would be useful to create a Shanghai Cooperation Organisation energy market, based on the grouping EurAsEC + China + Turkmenistan.
