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Tag Archives: Gazprom

Economic and Environmental Risks in Abe’s Energy Investments in Russia

In 2019, Japan’s involvement in the Russian energy sector increased significantly, most notably with the purchase by a Japanese consortium of a 10% stake in Russia’s Arctic LNG-2 project. The Abe administration evidently hopes that these new investments will bring benefits, both in terms of energy economics, and as a means of furthering Prime Minister Shinzo Abe’s ambition to settle Japan’s territorial dispute with Russia. In both respects, the Japanese leadership risks disappointment.

Gazprom Tanker Breaks Through to the Pacific

In the midst of Japan’s energy woes, prompted by the Fukushima disaster and reinforced by the uncertainty arising from the tensions in East Asia, the arrival for the first time of a Liquefied Natural Gas (LNG) tanker through the Arctic Ocean and into the Pacific Ocean offers hope and the chance to diversify away from the sea lanes Tokyo currently relies upon for the bulk of its energy imports. This is possible thanks to the gradual melting of Arctic Ocean ice, technological developments, and Russia’s policy of energy export diversification.

The Cold Road to Europe

The long string of incidents off the Senkaku-Diaoyu Islands this summer and the wider maritime territorial disputes in East and Southeast Asia have been overshadowing a major development with great potential implications for Japan: The northern sea route, linking East Asia with Europe through waters traditionally closed by ice to commercial navigation, are increasingly accessible during the Arctic summer thanks to the global warming.