Russia's gas pivot to Asia: A short-sighted policy or a long-term strategy?

Russia is one of the major global actors in the field of energy. Endowed with abundant resources, it enjoys high production rates in oil and natural gas. The country is the world's largest natural gas exporter controlling almost 20% of the international gas market. It is particularly well known for its dominant position in the FSU and EU gas markets where it provides most of the gas imports. Strong historical ties and its geographical location allow Russia to exert tremendous influence over gas prices in both markets, giving it a certain geopolitical leverage. However, while Russia's position in its traditional core gas markets remains rather strong - even in the face of growing competition - the country has recently entered a difficult period of economic and energy transition. This has forced the country's leadership to anticipate and adapt accordingly. Russia's economy fell into recession at the start of 2011 and the abrupt changes within global energy markets since then (the decline in oil and gas prices, spot price development, LNG expansion, etc.) have not only called into question the country's ability to honour its contractual commitments but also its whole export strategy. Diversifying its export markets would appear to be the logical answer to both Russia's economic difficulties while also ensuring the proper functioning of its energy sector, especially the gas industry. This paper aims to examine the reasons which have prompted Russia to seek closer gas cooperation with Asia Pacific countries, as well as highlight its actual gas pipeline and LNG projects in the East.