According to Grama (2012), although Sino-Russian energy partnership is stable, there are 6 limitations that potentially discourage the further development of the partnership as follows: Both China and Russia is not the primary diplomatic target of each other China and Russia consider more in relation with the Western world. This causes strong impact of Sino-Russian energy partnership as both may sacrifice each other in order to main good relationship with the west.
Different position of both countries in the international energy market The different market position of China and Russia makes China has less bargaining power when dealing with Russia. China needs to make more compromise in order to maintain the partnership. China is an …show more content…
Energy trade can be expanded and become more cost-effective especially under high energy prices. Temporarily, China imports oil from Russia through railway. The cost is half more expensive than using pipeline which is not effective.
Chinese threat It refers to the threat that discouraging Sino-Russian partnership. Firstly, the Far East region of Russia received a large immigration of Chinese which forced Russia to impose more anti-Chinese projects including energy cooperation. Secondly, the rise of China caused Russian dissatisfaction that China is attempting to consume Russian natural resources to strengthen state capacity and weaken Russian influence at the same time. These destroy ‘camaraderie and partnership’ between China and Russia.
Influence of other countries Except internal factors of China and Russia, U.S and other regional powers are external factors that have strong influence in Sino-Russian energy partnership. They reflect the fragility of the partnership that more emphasizes on economic interests rather than strategic interests. …show more content…
High cost is paid by Japan to import Russian oil and gas. Japan is willing to contain China by paying an unreasonable high price to Russia. For instance, Japan beard the full cost of building pipeline from Siberia to the Pacific coast of Nakhodka so that Nakhodka can be the only outlet of the pipeline. This leads to the failure of Sino-Russian pipeline construction from Angarsk to Daqing. China failed to consume large proportion of Russian oil.
South-Korea
The South-Korea is one of the world largest energy importing country. She is the 5th largest oil importing country, 2nd largest gas and coal importing country. Currently, Middle-East is the main source of energy supply of Korea. In order to reduce reliance to Middle-East, Korea attempts to import energy from Russia. Therefore, she support Japanese energy project that constructing pipeline from Russia to Nakhodka. Increased participation Japanese energy project allows Korea to gain more
Different position of both countries in the international energy market The different market position of China and Russia makes China has less bargaining power when dealing with Russia. China needs to make more compromise in order to maintain the partnership. China is an …show more content…
Energy trade can be expanded and become more cost-effective especially under high energy prices. Temporarily, China imports oil from Russia through railway. The cost is half more expensive than using pipeline which is not effective.
Chinese threat It refers to the threat that discouraging Sino-Russian partnership. Firstly, the Far East region of Russia received a large immigration of Chinese which forced Russia to impose more anti-Chinese projects including energy cooperation. Secondly, the rise of China caused Russian dissatisfaction that China is attempting to consume Russian natural resources to strengthen state capacity and weaken Russian influence at the same time. These destroy ‘camaraderie and partnership’ between China and Russia.
Influence of other countries Except internal factors of China and Russia, U.S and other regional powers are external factors that have strong influence in Sino-Russian energy partnership. They reflect the fragility of the partnership that more emphasizes on economic interests rather than strategic interests. …show more content…
High cost is paid by Japan to import Russian oil and gas. Japan is willing to contain China by paying an unreasonable high price to Russia. For instance, Japan beard the full cost of building pipeline from Siberia to the Pacific coast of Nakhodka so that Nakhodka can be the only outlet of the pipeline. This leads to the failure of Sino-Russian pipeline construction from Angarsk to Daqing. China failed to consume large proportion of Russian oil.
South-Korea
The South-Korea is one of the world largest energy importing country. She is the 5th largest oil importing country, 2nd largest gas and coal importing country. Currently, Middle-East is the main source of energy supply of Korea. In order to reduce reliance to Middle-East, Korea attempts to import energy from Russia. Therefore, she support Japanese energy project that constructing pipeline from Russia to Nakhodka. Increased participation Japanese energy project allows Korea to gain more