Fragmented Cooperation: The Role of State-Owned and Private Companies in Sino-Russian Energy Collaboration

Abstract:Observers tend to interpret the contemporary Sino-Russian relationship in terms of strategic, purposeful cooperation driven by national interests and power-political considerations. The search for power and security, as well as balancing against the United States, have increasingly been pushing China and Russia closer together. The energy realm offers a distinct picture of the Sino-Russian relationship. The pace of cooperation has varied and depended on key domestic players in particular sectors. As a consequence, success stories have been accompanied by major setbacks. Energy cooperation encompasses both a meteoric rise of oil cooperation and the muddling through of gas cooperation. The foundations for close ties in the energy realm were laid well before the post-Crimean acceleration of Sino-Russian cooperation. More often than not, however, parochial interests of dominant state-owned and private enterprises rather than strategic considerations have driven this cooperation. Looking through the prism of energy cooperation, I emphasize the complexity of Russia and China as actors in international politics instead of approaching them as rational and unitary players.