Japan-Russian energy cooperation won’t produce results without solid bonds

Japan and Russia agreed on 12 issues including energy development when President Vladimir Putin recently visited Japan. But, the concrete terms of these economic agreements are not clear. Dr. Vladimir I. Ivanov is director of research at a Niigata-based think tank called Economic Research Institute for Northeast Asia. He says that “compared with Russia’s relationship with Europe, or with the United States, relations with Japan are not so developed. Unless there are solid bonds established, some energy projects may not be feasible.” He also says that Russia will push ahead with the energy development project without Japan’s cooperation because it is targeted at multiple markets.

Q: What is the significance of developing natural resources in Eastern Siberia and the importance of the energy market in East Asia for Russia?
A: Developing oil and natural gas resources in new areas is very important for Russia. First, new projects would help expand the exports of gas and oil in the next 15 to 20 years. Second, Russia is likely to become economically visible in the region, filling the growing demand for energy on the part of neighboring countries, especially China, thereby obtaining very significant revenues. Third, the energy sector development and construction of delivery infrastructure respond to strategic domestic needs.

One of the problems in Russia is that its economic space and therefore the society have a potential tendency toward fragmentation. Russia is a country of vast distances and some ethnic differences. Sometimes, in such a large country, the market forces could weaken the internal economic bonds. Developing natural resources in eastern regions and building the west-east pipelines for oil and gas will provide the long-term momentum for stability, development and economic reintegration.

Asahi Shinbun