The Russian oil and gas industry earns more than half of the Russian tax revenue and foreign currency, and has been playing the role of the backbone of the state economy through the eras of the Soviet Union and the Russian Federation.
With the elongation of distance to the European market from the oil producing regions, starting from Baku in the era of Imperial Russia to the Second Baku (Volga-Ural) and the third Baku (West Siberia) in turn, the role of the oil pipeline system as the transportation infrastructure became more and more important and the deployment of pipelines has become one of the indispensable pillars of oil strategy. Now, the oil pipeline network is to reach the Pacific Ocean, which will enable Northeast Asia to be added as a destination for Russian oil, with a result of expanding influence for Russia in these regions.
On the other hand, gas exports from the Soviet Union to Eastern Europe started in 1967 by constructing a trunk pipeline from Ukraine, which was extended to West Germany in 1973, overcoming the confrontation between the East and the West and becoming a regional stabilizer. The United States considered this pipeline as an energy weapon and criticized this deal by saying that when Soviet gas flows to Western Europe, its political influence must flow like the gas itself. However, the Soviet Union collapsed in 1991, while gas transportation continued without any disruption. This is evidence that the gas pipeline from the Soviet Union was purely for a business purpose and was not politicized. Recently, Russia is aiming to export gas to northeastern Asia, which is expected to be a new stabilizer in this region, although different types of diffi culties (especially about the method of determination of the gas price) still need to be resolved.
View full abstract