Structuring Chinese Energy Investments Under the Russian Law on Strategic Investments

Abstract

Abstract As one of the world’s leading oil- and gas-exporting countries, Russia has many of the prerequisites for playing a significant role in achieving some of the energy policy objectives of China’s Belt and Road Initiative (BRI). In fact a number of multi-billion Chinese investments in the Russian energy sector have been made during the past few years. Taking the existing experience of Chinese energy investors into account, this article critically analyzes the legal and regulatory framework governing the production of natural resources and the making of energy investments in Russia. The Russian authorities consider energy as a sector of high strategic importance, necessitating increased attention by its legislator and supervising bodies. The article argues that the restrictions imposed on investors by Russia’s rigid legislation predetermine the participation of state-controlled companies and ensure that all major foreign investments in Russia’s oil and gas sector are assessed primarily for their political significance.