China Can't Solve Russia’s Energy Technology Trap

Russia has been heavily dependent on Western technology. China is unlikely to be a replacement.

While the EU has been historically dependent on Russian oil and gas supplies, this dependence has proved to be a two-way street, with Russia dependent on European goods and technology. This trade has nonetheless remained asymmetrical: Russia imports equipment, consumer goods, and high value-added products (such as luxury garments, cars, and foods), while it exports raw materials. Today Russia’s hydrocarbons are becoming harder to find and more expensive to produce even though the country’s technologically underdeveloped economy relies increasingly on the revenues they ensure. Moreover, despite possessing over 30 percent of global gas supplies and unconventional gas reserves that are estimated to be ten times larger than those in all of Europe, today’s Russia is heavily reliant on Western technology to boost energy extraction and develop these promising resources.

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