China's Hunger for Oil: The Russian Connection

China's rapidly growing demand for hydrocarbons and its wish to diminish its dependency on imports from the Middle East have stimulated cooperation between China and Russia. Since the 1990s China is looking for a new strategic relationship with Russia for its oil and natural gas provision from Siberia. This article provides an overview of the changes in China's energy sector, including oil, coal, natural gas and electric power, and considers the development of the Russian hydrocarbon industry. It then analyses the main areas of energy negotiations in which Russia and China are involved: oil and gas pipelines in Siberia, hydrocarbons from Sakhalin and oil from Kazakhstan. While these negotiations have been troublesome, recently Russia and China have informally developed a strategic partnership and bilateral relations are now at their best in history.