Russian Arbitrage
Pipedream or Eastern Promise?
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Date
2010
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Other Publication
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Abstract
Things are looking up for Russia. Prime Minister Putin finally opened a new pipeline exporting east Siberian oil to the Chinese mainland. Dubbed the Eastern Siberia-Pacific Ocean (ESPO) link, the plan is to pump 1.6 million barrelds per day towards the Pacific Ocean over the next few years. The rationale is clear. Diversifying supplies to Asia offers Russia what all energy producers want: leverage over competing consumers in the East and West. Keep Asia keen, treat Europe mean. Cash in on the premium.
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European Energy Review
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03515 - Wenger, Andreas / Wenger, Andreas