This report makes the point that in both Russia and China it is politics - and not market or commercial considerations - that largely drive energy relationships with each other and the outside world. For both countries, energy and energy security is regarded as a strategic asset and/or objective that are at risk from outside forces. The conditions that each state has attached to their energy policies ironically preclude the kind of easy cooperation seen in other strategic and political issues between Moscow and Beijing. In both Central and Northeast Asia, Russia has blocked Chinese efforts to realize its version of energy security, yet it has not been able to come up either with the resources or means for a coherent policy of supplying China with reliable quantities of energy that would lead China away from non-Russian producers. The under-fulfilment of the potential for Russia to supply China will continue and continue as well to be a source of strain in their relationship.

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