The Kremlin wants a greater share of the profits and is pressing the foreign companies to reconsider the terms of their involvement. This has prompted widespread condemnation in Japan, Europe and the United States and added to the growing concerns about Russia’s reliability as an energy partner.
At peak, oil production the two Sakhalin projects will account for about seven percent of demand in the Asia-Pacific region.
These are developments of global significance that will make a major contribution to energy security. They will also bolster Russia’s economic significance in the Asia-Pacific - a key Kremlin foreign-policy goal. At the recent Valdai Discussion Club of policy analysts and journalists, Russian President Vladimir Putin stated that the share of Russian energy exports going to Asia should be increased from the current three percent to around thirty percent over the next ten to fifteen years.
