Trading Places in Central Asia: The “Shift” in the Nature of Russian and Chinese Engagement and Its Effects on Regional Cooperation in the Energy Field

Abstract

Energy networks provide strong basis for cooperation on the interstate level. Considering its political nature, energy agreements require cooperation between the highest levels of national governments. Additionally, the transit of energy through multiple countries requires practical multilateral efforts in order to maintain the projects which involve an advanced level of technical support. In that regard, energy cooperation, both political and technical, can be considered as a continuous elite driven process. Therefore energy cooperation is more consistent with the top-down nature of Central Asian regionalism.

The first section of the chapter provides a brief overview of the power-generating sector in Central Asia and analyzes the effects of Russian and Chinese initiatives on regional cooperation. The second section provides a discussion of the gas producing and transporting industry and highlights the differences between the two major powers’ engagement in the sector.

The chapter argues that there have been two noticeable trends in that regard. First, neither of the two major powers made significant impact on facilitating cooperation in the electric power sector because it is closely tied to water resources, which remain a serious point of friction in the region. In fact, both Russia and China have contributed toward energy independence of several Central Asian states subsequently reducing the level of interdependence among them.

Second, in the field of hydrocarbons, Russia actively engaged with Central Asian states on a bilateral basis, but provided very limited support for multilateral initiatives. Visibly, Russia’s role has been that of a ‘middle man’ rather than a unifying actor. China, in contrast, has been expanding its bilateral energy-securing initiatives to involve all the central Asian States under schemes which require active practical interstate cooperation. China-sponsored projects have the potential to rewire regional electric energy flow and thus reconnect the region in a new and different direction, away from the Russia-centered post-Soviet network. While serving Chinese interests though, the China-sponsored network also contributes toward cooperation among Central Asian states. This demonstrates a shift in China’s policy from largely bilateral engagement toward actively promoted multilateralism.