Russia and China Compete over Central Asia
There’s an interesting editorial in the Japan Times today about how China has made so many inroads into Central Asian energy investment, especially in just the past few years. Many governments in the region, such as Turkmenistan and Kazakhstan, are eager to avoid dependence on Russian infrastructure, which could be a sign of the times to come … Gazprom might need to tune down its political plays.
Beijing’s gains come at Moscow’s expense. Russia had taken about 70 to 80 bcm of Central Asian gas annually, which it then exported to Europe or used itself, allowing it to redirect Siberian gas to European markets — again, maximizing Russian influence in the region. Gas exports were significant not just in themselves, but also because they provided a means for Russia to acquire interests in downstream companies in Europe. With Russian natural gas production now stagnant, the loss of Turkmen gas considerably diminishes Russian leverage.