Energy Policies in Central Asia: Main Outcomes

Abstract

After the collapse of the USSR, Central Asian countries faced a number of political and economic challenges. The most pressing issues were inter-State interaction in the energy sector and the pursuit of their independent energy policy. But the efforts of the countries to implement integration projects in the energy sector failed. The Central Asian states had twin economies and poorly developed infrastructure. The main obstacle for expanding energy cooperation of the countries in the region was their geographical remoteness from the major hydrocarbon resource consumers. Despite the difficulties, the countries pursued a policy aimed at attracting foreign investment in the development of deposits and implementation of pipeline projects. China and Western countries had great influence on the discussion and further implementation of a series of pipeline projects. Central Asia was of great importance for China which sought to strengthen its influence in the countries of the region but curtail Russia and Western countries’ influence. In this matter, China has made significant progress with the pipeline projects in the region. The EU and the US were also promoting energy projects. However, the remoteness of the countries from the European market for hydrocarbon resources precluded projects for oil and gas pipelines going from Central Asia to the west to be implemented. As a result, the Central Asian countries largely opt for China and Russia, as an important partner, in the implementation of their energy policy.