The Research Of Prospects For The Development Of Energy Economic Cooperation Between Russian Federation And People’s Republic Of China

In recent years,with the fierce conflict between Russia and Western countries on the issue of Ukraine,the Russian government has taken the initiative to strengthen energy cooperation with China and has reached a series of important agreements on oil and gas trade with China.Correspondingly,China has a huge energy gap,70% of its crude oil is imported,and its domestic natural gas supply capacity is very limited.The high complementarity of energy supply and demand between China and Russia constitutes the research background and premise.The main purpose of this research is to analyze the current state of Russian-Chinese economic cooperation,find out the main problems,which impede its development,ant to suggest the list of recommendations that could help to resolve these problems.The fuel and energy complex plays an important role in the economies of the Russian Federation and China,however,since the beginning of the 21 st century China has been experiencing a gap between domestic production and energy consumption,due to the increasing demands of a growing economy.Nowadays the energy cooperation between China and Russia is making great progress,but the space for further cooperation is huge.At present,Russia’s petroleum products account for 15% of China’s oil imports.Correspondingly,Russia’s oil products account for more than 20% of the world market.In addition,Russia is a major natural gas supplier to Western Europe,but in China’s natural gas import territory,Russian products account for less than 10%.As far as the current situation is concerned,there is room for further expansion of energy cooperation between Russia and China.The energy cooperation between Russia and China is of a strategic nature and is of mutually beneficial interest.Firstly,cooperation in this area helps to strengthen energy security in Northeast Asia.Secondly,the interaction opens up prospects for the development of the fuel and energy complex of both sides.Thirdly,the Russian Federation receives the necessary support in financing expensive projects,the implementation of which would be difficult without foreign investment.And finally,cooperation between the two countries allows developing new energy deposits and more efficient methods of energy production.As far as energy cooperation between China and Russia is concerned,this paper analyzes the potential space of China’s import of Russian energy products by empirical test.At the same time,combined with the factors of supply,demand,external support conditions,competition pattern and other factors,this paper summarizes the factors restricting the further expansion of energy cooperation between China and Russia.Russia’s energy cooperation policy with China is unstable,strong competition of other energy exporting countries for Russian energy products,the division of labor between China and Russia in the energy industry chain is not conducive to Russia.In order to solve the current restrictions on the energy cooperation between Russia and China and lay a better foundation for the energy cooperation between China and Russia,Russia and China should work together to expand the depth and breadth of bilateral energy cooperation,so as to ensure that bilateral cooperation becomes a normal stability mechanism.At the same time,Russia should take the opportunity of China’s market gap to strengthen investment in the field of energy processing and extend the oil and gas industry chain.In order to cope with the excessive competition between Turkmenistan,Kazakhstan and Russia in the Chinese market,Russia should use the CIS mechanism with relevant countries to coordinate its export strategy.