Russian Gas Companies Strategies in the Asia-Pacific and in the Arctic under Western Sanctions and Selective Government Support


  •  Sergei Sevastianov    
  •  Ekaterina Sokolova    

Abstract

The main purpose of this research is to determine whether Russia being under Western economic sanctions could significantly strengthen its presence in the Asia-Pacific with a pipeline gas and LNG supplies. Based on the study of the Russia’s current and planned gas projects in the eastern part of the country and in the Arctic, that are realized under sanctions’ pressure, the authors concluded that most probably by 2030 Moscow can reach this strategic objective. To resist Western sanctions against the Russian energy industry Moscow launched a program of accelerated import substitution, and as a result they have only partially achieved their goals. Considering Russia’s largest gas exporters, they resorted to different strategies to counter sanctions. The state company Gazprom postponed plans for offshore gas exploration in the Arctic and continues to prioritize gas pipeline projects which reinforce its dependence on China. In contrast, with the help from the RF government and foreign investors, the private company Novatek successfully creates a powerful infrastructure for producing LNG in the Arctic and for delivering it to Europe and the Asia-Pacific.



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