North-West Russia as a gateway in Russian energy geopolitics MARKKU TYKKYLÄINEN Tykkyläinen, Markku (2003). North-West Russia as a gateway in Russian ener- gy geopolitics. Fennia 181: 2, pp. 145–177. Helsinki. ISSN 0015-0010. This paper examines Russian energy development and plans and their geopo- litical implications around the turn of the new millennium. Argumentation is founded on the interpretation of the impacts of stakeholders’ interests on geo- politics under new societal conditions and the legacy of past energy produc- tion and logistics. Empirical evidence consists of material from the projects of Russian companies and the plans and politics of the Russian Government for developing the energy sector. The redefined borders and the geographical shifts of energy production have brought about the orientation of Russia’s energy development and interests towards the north. The former empire’s parts bordering on Russia in the west, Belarus and first of all Ukraine, have become problematic due to transit pay- ment conflicts. Consequently, Russian companies develop ports in North-West Russia as well as plan the construction of new oil and gas pipelines through the Baltic Sea Region. On the other hand, the northern location of the infra- structure plans is a geographical necessity, in the way that new oil and gas deposits lie in northern high-latitude zones. Energy stakeholders’ market-ori- ented interests greatly influence the country’s economic orientation to the ad- vanced economies and the global economy. Thus, Russia’s new energy geo- politics means economic integration and networking with partners (compa- nies, nations and economic areas) that are able to co-operate successfully in the economic sector. In all, the energy projects and plans in Russia are de- rived from these restructured, pragmatic and market-led economic interests, which have led to the growing significance of gateways in North-West Russia. Markku Tykkyläinen, Department of Geography, University of Joensuu, P.O. Box 111, FIN-80101 JOENSUU. E-mail: [email protected]. MS received 11 September 2003. Aims and research area changes in accessibility to the export market that influence Russian business and power interests, Tracing new energy geopolitics as well as current geopolitics in Russia. The study shows the geographical shifts in energy produc- This paper analyses Russian energy development tion and the changing importance of regions and and its geopolitical implications in the recent past, logistic gateways in Russia. Secondly, the market- from Soviet times to the post-1998 growth peri- led interests of the export sectors influence the od. The geographical focus of the paper is on new geopolitics of Russia. For instance, energy North-West Russia and its adjacent areas in the producers may have considerable influence in European North. The hypotheses of this study are policy-making. Furthermore, this paper evaluates that the current energy development is explained Russian energy plans and trends up to 2030 and both by the past Soviet legacy, including its geo- aims at assessing their repercussions on Russian graphical dissolution, and the interests of the energy integration with advanced countries. stakeholders in the new Russian market-oriented This article looks more closely at the new con- economy. Furthermore, these corollaries have figurations of the Russian energy system and the bearing on Russian geopolitics. First, there have geopolitical aspirations boosted by energy inter- been locational changes in energy production and ests. The study consists of 1) scrutinising the main 146 Markku Tykkyläinen FENNIA 181: 2 (2003) locational developments in energy production, North-West Russia’s location relative to the cen- 2) elaborating on the new market-led economic tre has changed. The dissolution of the Soviet environment and foreign trade relations in the en- Union led to the Russian energy sector being al- ergy sector, and 3) examining the changes in Rus- lowed to operate in part under the rules of inter- sian geopolitical thinking, partly as the result of national business. Furthermore, when the Soviet points 1 and 2. All these factors bring about a new Union shrank and became just Russia, both the geopolitical situation in North-West Russia and geographical centre and population centre shift- the Baltic Sea Region. From a practical viewpoint, ed northwards, 333 and 389 km respectively this paper helps to understand the significance of (Lynch 2002, 41). Large energy production and the Baltic Sea transport routes for Russia, the ques- infrastructure systems have been constructed dur- tion of Baltic oil transport safety in the contexts ing the last decades. Coal, gas and oil have been of Russian oil transport, the development of north- extracted from various locations, and considera- ern gas pipeline systems as a part of the Russian ble shifts in the geography of energy production energy apparatus, and the nature of the linkages have taken place in the past few decades. The of the Russian economy to the world geo-econo- changes in the expanse of territory and the de- my. velopment of energy production (based on the location of reserves) are physical factors, and they North-West Russia’s position have impacts on geopolitics in addition to new actors, technology and institutions. The major research area is North-West Russia. To present North-West Russian energy development as part of the Russian energy system, which con- Theoretical and methodological sists of the country’s energy production and ener- arguments gy transport, this paper refers in many cases to energy production, logistical solutions, plans and Formation of geopolitics and geo-economic projects elsewhere in Russia and in the former competition Soviet Union. There are many definitions of North-West Russia or North-Western Russia (e.g. Geopolitics considers that the constitution of in- Blakkisrud and Hønnesland 2001, 9). In 2000, all ternational relations is bound to geographical Russian regions were grouped to form new mac- space. It is also bound to time. Theories based on ro-regions, Federal Okrugs. The North-West Fed- a static world-view or the perpetual fundamen- eral Okrug consists of the Northern and North- tals of geopolitics are hardly explanatory because Western Economic Regions and the enclave of institutional restructuring occurs at all times. Kaliningrad Oblast (Andreev & Olsson 2002, 1, Many events, such as the collapse of the Soviet 5). The Northern Economic Region includes the bloc, the socio-economic integration of many na- Republic of Karelia, Murmansk Oblast, Arkhan- tion-states into larger economic areas, the grow- gelsk Oblast (including the Nenets Autonomous ing dominance of global economic relations, the Okrug), the Republic of Komi and Vologda Ob- emergence of regionalism and separatism, the rise last. Five million people reside in this Region, and of multinational business and communities and the area of the territory is equal to the five Nor- the global war against terrorist organisations, dic countries and the Baltic States together. This show that the everyday geopolitics can change region stretches as a 800 kilometre-wide belt from rapidly. There are new contents and new reason- the borders of Finland to the Ural Mountains. The ing why conflicts emerge. The actors are chang- significant oil, gas and coal producers of the ing as well. It is no longer self-evident and valid Northern Region are located in Arkhangelsk’s that the premise of geopolitics (denoting a funda- Nenets Okrug, bordering on the Barents and the mental actor and its borders) is a nation-state Kara Seas, and in the Republic of Komi. The where the political elite of the state alone deter- North-Western Economic Region includes St. Pe- mines international relations based on a national tersburg, Leningrad Oblast, Pskov Oblast and ideology. The world has become more complex, Novgorod Oblast. More than half of the region’s networked, interdependent and fragmented. New eight million residents live in St. Petersburg. There interests and coalitions emerge. Agnew (2001, 13) are several important ports in St. Petersburg and says that world politics “is the outcome of socio- Leningrad Oblast. logical praxis based on rules, practices, and ide- FENNIA 181: 2 (2003) North-West Russia as a gateway in Russian energy geopolitics 147 as that are not set for all time but change as a re- bal and sub-global trade systems. Geo-economic sult of the contingencies of world history.” Con- competition on markets amidst companies and tents and actors change. Political turns, tensions governments prevails. and controversies in Russian geopolitics give rise Russia’s future geopolitical status is challenged to new interpretations. It is relevant to say that the by various political groups and movements. The geopolitical elite in Russia – and in many other main divide is between Atlanticists and Eurasian- countries – is a formation of diverse actors situat- ists. Yeltsin adopted Western principles and sought ed in various economic, political, ethnic and ide- to make Russia a part of the West (Huntington ological networks, and geopolitical decision-mak- 1993, 43). Putin’s regime is more pragmatic in ing consists of a sequence of time-bound deci- searching for Russia’s economic interests, but the sions made in evolving economic, societal and geopolitical outcome is similar. A new and emerg- political contexts. Thus, to understand the deci- ing factor is the war against terrorism that unites sion-making and geopolitics dealing with Russian many Russian and Western politicians. For the energy, the analysis is justifiably based on histor- Russians, the fundamental ideological issue is ical development and the influence of the new whether Russia should be a Eurasian power with power structures in Russia. its own mixed identity between the East and the If energy is the main source of foreign curren- West, or should it be a European nation amalga- cy, as it is in Russia, it is certainly in a central role mated to European culture and traditions (Tsy- in geopolitics.