Energy policies of Russia and China from a historical perspective. Who are the main actors in the formulation of energy policies?

China, The shift from self-sufficiency to the external need for energy ( importer). China started oil production in 1948 in the Daqing region, and after that, the policy of self-sufficiency in local resources continued until 1992, when China began to search for other markets to meet its energy needs due to the economic development achieved by starting from the economic opening that started in 1978. For the sake of a stable energy security policy, China developed the tenth five-year plan 2001-2005. This plan pardoned the guarantee and security of energy sources from abroad, to ensure continued growth, economic and modernization in China (supply security). During this start, a plan to build a strategic stockpile was sufficient for at least 90 days in Regular use, which was recommended in 1996, the Strategic Stock Project will be completed in 2020[1]. China has adopted a diversification policy to secure supply and policy of accessing energy sources in the fastest possible way, and this is what it is doing while building the Silk Road, which links it to several oil-exporting countries.
China has adopted several energy policies, a diversity which consists of access to several energy sources, such as the China Silk Road Project and the huge investments in energy extraction in Africa and Latin America, a peaceful gradual rise, non-expansionist or provocative policy in the field of energy security, lack of confidence in the global energy market, development of renewable energy sources at a high rate, the last one flexibility and continuous evaluation in interacting with demand and energy security.

Chinese energy policy is linked to the national security interests and concerns of the government of the People’s Republic of China. The most important factors influencing the formulation of Chinese energy policy are Chinese state-owned energy giants (SOEs), government institutions, the country’s largest national oil companies (CNPC, Sinopec, and CNOOC) where companies enjoy Substantially influence since they are all former government ministries and their top executives occupy somewhat high positions within the CPC. Moreover, research institutes such as the State Council Development Research Center (DRC), the Energy Research Institute (ERI) of the NDRC and many academic research institutes have central roles in the energy policy formulation process. The paper also outlines the role of Chinese financial institutions, such as the Export-Import Bank of China (EXIM) and the China Development Bank (CDB), in the energy sector[2].

China’s adherence to the policy of peaceful rise and non-interference in the internal affairs of the countries of the region and its commitment to the principles of peaceful coexistence led to the absence of important differences with the countries of the Middle East, this led to an increase in its expansion in the region, which is mainly related to its needs for oil and its derivatives for the sake of Maintaining high equipment for economic growth, thanks to its aforementioned policies, it has succeeded in establishing long-term cooperative and strategic relationships in a consistent manner and mutual benefit in the oil industry in order to achieve this goal.

For example, in Algeria, Chinese companies are primarily in the construction, housing and energy sectors. Important construction projects with Chinese financing and/or construction, such as the Algiers Opera House, the Sheraton Hotel, the Algiers Mosque, and the East-West Highway, are emerging in Algeria, just as thousands of Chinese workers who built a “Chinese Quarter” on the outskirts of the city of Algiers in contrast, China are taking advantage of Importing Algerian oil and gas at reasonable prices, this is a success for China[3].

Russia Gradual transformation into an energy giant (exporter). Russia’s Energy policies are divided into two parts: the energy policy during the Soviet Union before 1991 and the post-Soviet section (now Russia). During the Soviet era, and during Yusuf’s rule, two questions were that the policy of the Union is self-sufficiency ‘through the five-year plans, and after that the emergence of the emergence Union in the global energy market. In the sixties appeared in the oil will and in the seventies appeared in the natural gas market, and during the war of the Arabs and Israel in 1973 the union gained huge habits as a result of doubling the price of oil to four times, but years later the weakness returned to the Russian economy due to wrong policies and unforeseen prediction That there is a drop in oil prices, the union lost a lot, and a major economic crisis has formed. As for the period after the collapse of the Soviet Union, the privatization policy started, but the energy sector was far from this process, is due to the importance of this vital sector not only because it generates revenue for the state and government treasury and for being a mainstay for the rest of the non-oil industries. But protecting a sector from the privatization process did not last long, and in 1992 and 1992 the period saw the privatization and liberalization of the energy sector, and the energy price doubled.

Despite the continuation of privatization policies, during the era of President Putin and the rise of his power at the beginning of 2000 till today, there is a decisive trend towards keeping the energy industries under almost complete control of the state. for example, The government has also been restricting the activity of the Russian-British company “BP-THK” in order to support the monopoly of state companies affiliated with the state for the energy sector Russia, most notably the company “Gazprom” natural gas field, which was chaired by the former Russian President Dmitry Medvedev from 2000 until his assumption of power in 2000. 2008[4]. And Here we understand that the most important current factors governing the formation of the Russian energy policy are the Russian state represented by Vladimir Putin and Broome Company, where its subsidiary company, Gazprom and Russia, controls 90% of gas production in Russia, more than 50% of oil production and Lukoil Petroleum, whose average daily production of oil reached 981 million barrels in 2007[5]. SO The Russian state, President Putin, and the two companies, “Gazprom” “Lukoil” are the most important factors controlling the formulation of energy policy.

Russia is a successful example of becoming an energy giant, as it has successfully developed Russian exports of oil and gas, strengthened control over alternative energy transmission networks (TANAB) and boosted Russian investment abroad, increasing Russia’s energy expectations, especially European markets, so it became a giant Russian in The energy field also strengthens its position in foreign policy and the global arena.

There is no doubt that the success of energy policies has strengthened the comprehensive capabilities and international standing of Russia, as one of the “active and influential countries” at the international level. The South Ossetia crisis in 2008 demonstrated this because it reflected the EU’s respect for Russian interests by looking at the strategic interests that bind the two sides in light of the energy portfolio.

References

[1] Abdelkader Dandan, Chinese strategy for energy security and its impact on stability in its regional environment: Central Asia – South Asia – East and Southeast Asia, unpublished doctoral thesis, University of Batna Algeria: Faculty of Law and Political Science, 2012-2014, p. 113- 114.

[2] Formulation of Energy Policy in China: Key Actors and Recent Developments, Christopher Burke, Johanna Jansson, & Wenran Jiang, 2009. P1-3.

[3] 21John Wong, “ China’s Rising Economic Soft Power,” Asia Dialogue, March 25, 2016, https://theasiadialogue.com/2016/03/25/chinas-rising-economic-soft-power. Accessed on 14 April 2020.

[4] Louis Geoste, Competition Assessment by Major Producers from outside the Gulf Cooperation Council Arab Countries: Iran, Russia, and Venezuela, in China, India, and the United States of America: Competition for Energy Resources (Abu Dhabi: The Emirates Center for Strategic Studies and Research) 2008. P. 85.

[5] The Economist, April 14th, 2007, pp. 27-28.