By Stephen Blank, Kevin Rosner
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Extra resources for Russo-Chinese Energy Relations: Politics in Command
As a South Korean newspaper observed: The adequacy of the project had already been evaluated, and even signatures from Russia, China and Korea had been exchanged in Moscow last November…. Russia’s plans to suspend the project cost an estimated total of US $15 billion and relates to Russia’s move to nationalize the nation’s energy sector. On September 14 [the day before the threat to revoke the licence was publicized] the Russian Government approved of the merger between the gas company Gazprom and the oil company Rosneft, which are both operated by the state.
Given the centrality of oil and gas to Russia’s economy that would be a catastrophe. Thus for Moscow to dominate, it is essential not only that the grand Eurasian design sketched out by Putin since 2000 be realized, but also that his proposals for an Organization of the Petroleum Exporting Countries (OPEC)-like cartel over natural gas come to fruition and that Central Asia’s efforts to build GMB Publishing infrastructure are limited to those compatible only with Russia. Apart from the grand design for Asiatic railways and pipelines to major East Asian states, this also means the successful completion of major transportation and energy projects in Central Asia, including the NorthSouth corridor, which will travel through Central Asia, Iran and India.
By September, the government’s threat to revoke the company’s licence was made public164. The interested parties were well aware of what was transpiring here and it had little to do with alleged irregularities on TNK-BP’s part. As a South Korean newspaper observed: The adequacy of the project had already been evaluated, and even signatures from Russia, China and Korea had been exchanged in Moscow last November…. Russia’s plans to suspend the project cost an estimated total of US $15 billion and relates to Russia’s move to nationalize the nation’s energy sector.