Russo-Chinese Energy Collaboration and Divergence in the Arctic Ocean Region: from Yamal LNG to Arctic LNG 2

Abstract

The paper investigates mainly the financial aspects of the Arctic energy projects, as well as the strategic analysis of Russo-Chinese interest in the region. Therefore, the main purpose of this paper is to review the increasing interdependence of the relevant policies of the two countries and the growing Chinese involvement in Russian LNG megaprojects. China-Russia economic and political relationships have many facets, and collaboration in the LNG area is a vivid example of how cooperation between the two nations is built. While Beijing was interested in supplies from the northern neighbor for decades, the economic relationship strengthened when China included Russian LNG projects in the BRI. The project finance framework was chosen to analyze the ongoing Sino-Russian efforts to deliver Yamal LNG and Arctic LNG 2 integrated plants. According to the framework, four areas, namely equity, debt, contracts, and offtakes, are shaped by the efforts of China and Russia. While cooperation in some areas is seamless and mutually beneficial, the results in other ones are less straightforward.