Russia and Cooperation with the APR States in the Field of Energy Share of Regional Trade in Russia’s and RFE Foreign Trade (% of the overall trade balance)

Russia Russian Far East

29,8 17,1 6,8 1,9 5,6

18,7 34,4 85,7 APEC CIS European Union Other states Labor

PRC, DPRK

Technology, Natural capital resources

Japan, ROK, CIS, ASEAN Russia, Mongolia, Australia Nikolaevsk -na- Motorways Amure

Komsomolsk-na- Amure Lidoga Vanino Chita

Japan

Nakhodka Vladivostok DPRK 136 thud

18,8 thud 45 thud

1981 1998 2003 St Petersburg Moscow

Khabarovsk Vladivostok Gas Oil

1,5 23,9 25,8 4,6 0,7 51,5 52,3 0,3 24,6 17,3 2,1

Eastern Europe China Western Europe South Korea CIS Japan Asia Others FavorableFavorable ConditionsConditions forfor GrowthGrowth inin RussianRussian HydrocarbonHydrocarbon ExportsExports GrowthGrowth inin AsianAsian oiloil consumptionconsumption levelslevels toto 35%35% betweenbetween 20002000 andand 20102010

StabilizationStabilization oror decreasedecrease inin oiloil productionproduction inin AsiaAsia DecreaseDecrease ofof interinterinter-regional--regionalregional oiloil suppliessupplies fromfrom 4242 toto 272727-30%--30%30% GreaterGreater rolerole ofof thethe MiddleMiddle East,East, fromfrom 5050 toto 65%65% StrongerStronger monopolymonopoly rolerole ofof MiddleMiddle EastEast statesstates andand moremore stressstress onon energyenergy securitysecurity forfor thethe importingimporting statesstates FavorableFavorable ConditionsConditions forfor GrowthGrowth RussianRussian HydrocarbonHydrocarbon ExportsExports toto NEANEA

Greater oil consumption rates in Asia Pacific –growing monopoly role of the Middle East states – energy security issues for importing states

NEA states becoming net importers

Need to diversify oil and gas import markets

Common interests of Russia and NEA – the infrastructure for cooperation Russian Far East Energy Resources

Oil Natural gas Over 8 bn t 40 trln cubic meters

Coal 20 bn t Sakhalin Oil and Gas Complex

Oil Gas recovery production annually annually 45-50 45 mln t 45 bn t RFE Prospective Oil and Gas Areas (outside Sakhalin)

Oil

4 bln MT

Natural Gas 19 trln CUM Oil reserves at 1,153 mn t Through capacity at 80 mn t Length 4,000 km Construction time terms 3.5 years Taishet

Tynda

Angarsk Komsomolsk- na-Amure

Chita

Khabarovsk

Nakhodka Yurubcheno- Tokhomskoye Vilyujskoye Sobinskoye Yakutsk Chayandinskoye Krasnoyarsk

Kansk Tynda Komsomolsk- Achinsk Kovyktinskoye Okha Chita na-Amure Skovorodino Val Khabarovsk Sakhalin-1 Ulan-Ude Sakhalin-2 Irkutsk Harbin Yuzhno- Sakhalinsk Shengyang Vladivostok Ulan-Bator Dalian Pyongyang

Seoul Okha Sea Pacific Ocean Sakhalin – Komsomolsk- Boatasino na-Amure – Khabarovsk Lazarev – Vladivostok Sakhalin island Gas Pipeline Solnechny De-Kastri Khurba Komsomolsk-na-Amure Elban

Khabarovsk

Japan Legend Luchegorsk

Operating China Sea of Japan gas pipeline Gas pipeline under construction Vladivostok Designed gas pipeline PDRK 25

15-18 Incentives for Cooperation Realistic projects  Cross-border trade  Energy bridge between Vostok United Power Systems and the Korean peninsula (in 2004 a feasibility study will be conducted for TLs)  Energy bridge between Sakhalin and Japan (feasibility study is being prepared by Sumitomo of Japan, the project design proposals were drafted by United Energy Systems of Russia in 2000) Diversified electric power network along all the RFE borders  Forming the inter-system transit of TLs for 500 kV Russia and Cooperation with the APR States in the Field of Energy