ROLE OF ENERGY RESOURCES OF EAST SIBERIA AND THE FAR EAST IN IMPLEMENTATION OF RUSSIA S EASTERN ENERGY STRATEGY

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1 ROLE OF ENERGY RESOURCES OF EAST SIBERIA AND THE FAR EAST IN IMPLEMENTATION OF RUSSIA S EASTERN ENERGY STRATEGY 1. Introduction: current state and key indices of the Russian energy sector B.G. Saneev Index The energy sector has always played an important role in Russia s economy. During re- Table 1. Role of energy sector in the Russian economy structuring its role increased due to a decrease in production volumes in other branches of the economy (Table 1). Share of energy sector, % Year Volume of industrial produce Gross domestic product Tax proceeds to federal budget Export Investment As is seen from Table 1, in 2010 the industrial production of the national energy sector accounted for 44.4 %. It provided 43.5 % of tax proceeds to the budget and 67.3 % of exchange receipts from the export of energy resources. Russia plays an important role in ensuring the global security: Russia possesses 19 % of the world proved coal reserves, 27% of the world natural gas reserves, and 7 % of the world oil reserves. In 2010 Russia generated 1037 billion kwh of electricity (4.9 % of the world generation), produced 317 million t of coal, 505 million t of oil, 649 billion m 3 of natural gas (4.4; 12.9; 18.4 % of the world production, respectively). Russia is the largest exporter of energy resources: in 2010 it exported 116 million t of coal (12 % of the volume of world coking coal trade), 200 billion m 3 of natural gas, 247 million t of oil, and 19.6 billion kwh of electricity (21, 13 and 0.1% of the volume of trade in these energy resources, respectively). So far the East Asia countries occupy an inessential place in the export of Russian energy Russia in figures, 2011: Concise statistical collection./rosstat.- M., p.; BP Statistical Review of World Energy, June, 2011 resources (Table 2): fuel (coal, oil) export varies from 15 to 17 % of the total amount of its export and the share of electricity and natural gas export makes up 6 and 8 % of their total export, respectively. Table 2. Export of energy resources from Russia in Fuel and electricity Including Export, Eastern total direction Oil, million t (15.4 %) Oil products, million t (8.9 %) Natural gas, billion m (6.7 %) Coal, million t (17.2 %) Electricity, billion (5.6 %) kwh In the future Russia will make efforts to play an important role in the world energy markets. In so doing Russia intends to diversify energy resources and importing countries by increasing supplies of energy resources to the markets of the countries of the Asia-Pacific region and 1

2 Asian Energy Cooperation: Risks and Barriers Irkutsk, 2012 especially to the markets of the Northeast Asia countries. 2. Eastern vector the priority line in Russia s energy development in the first half of the 21st century (basic conceptual aspects) Disintegration of the USSR and formation of Russia as an independent state functioning in new political and economic conditions necessitated revision of the earlier priorities in the economic and energy policy of the country. Loss of the Baltic and Black seaports as a result of disintegration of the USSR, political and economic problems in transportation of exported Russian energy resources to the countries of East and West Europe through the republics of the former USSR, on the one hand, the real danger of economic withdrawal of the Far East from Russia that arose in the late 1990s, on the other hand and the worldwide significance of the Asia-Pacific region, on the third hand, stipulate the strategic significance of the eastern geopolitical line of Russia s external economic relations. The national interests of Russia call for intensification of its mutually beneficial energy cooperation with Japan, China and other countries of Northeast Asia. This priority line in energy development of the country that was called unofficially The eastern vector of Russia s energy policy was clearly determined as far back as in 2003 in the Energy Strategy of Russia-2020 [1]. The core of this priority line is as follows: creation of new energy centers in East Siberia and the Far East will contribute to enhancing the energy security of Russia, restoring and strengthening the violated energy links among regions, solving many important problems of the federal, interregional and regional levels; According to foreign publications and some official documents of Japan, China and the Republic of Korea the Northeast Asia countries (NEA) include Mongolia, China, North and South Korea. fast and scaled development of the energy sector of Russia s Eastern regions and entry to the energy markets of Japan, China and other Northeast Asia countries should be considered as an important means of timely provision of proper positions of Russia in this strategically important world region; creation of the developed infrastructure in the form of interstate gas and oil pipelines in the East of Russia and Northeast Asia will decrease the cost of energy carriers, improve reliability of energy and fuel supply to consumers in different countries, help find the best solution to environmental problems. The Eastern energy policy that is part of the national economic policy is not an end in itself; it is rather a means for implementation of numerous fundamentally important problems of the federal, interregional and regional levels: socio-economic and geopolitical problems: 1) social problems improvement in comfort conditions, style and quality of population life in the eastern regions of Russia; 2) economic problems enhancement of the efficiency of economy operation and competitiveness in the East of Russia, rise in the level of resource provision of the country and accessibility of remote territories, expansion of the effective economic space of Russia, creation of conditions for attracting foreign investment and advanced technologies to Russia; 3) political problems consolidation and integration of the RF subjects, strengthening of the unity of the economic and energy space of the RF; 4) geopolitical problems strengthening of Russia s grounds in the world economic system, in the community of states in APR, Central and Northeast Asia. energy problems: 1) enhancement of energy security of the country and regions; 2) improvement in adaptability and reliability of consumer provision with energy and fuel; 2

3 3) updating of the territorial and production structure of the energy sector in the country and particularly its eastern regions; 4) formation of the transport and energy infrastructure in Russia s East systems of oil and gas pipelines, transmission lines and creation of the common transport and energy space in Russia. Until recently, due to some internal and external (international) reasons, Russia has been outside the main processes of economic cooperation development in APR. The external economic relations of Russia with the APR countries, especially with the NEA countries are immeasurably weak as compared to the European countries. For example, in the foreign trade turnover of Russia with the NEA countries made up on the average % of the turnover of Russia with the non-cis countries (as against % with the European countries). Russia needs a weighted, well-thought and scientifically sound strategy for economic and energy cooperation with the NEA countries. The eastern regions of the country East Siberia and the Far East with their powerful economic and energy potential are in the forefront in implementation of the national interests of Russia in this strategically important world region. 3. Initial conditions, target guidelines and strategic lines in energy development of East Siberia and the Far East East Siberia and the Far East possess a large fuel and energy potential. The hydro power potential is estimated at 81 % of that of the country. East Siberia and the Far East concentrate 46 % of the explored resources of coal, 15 % of oil, and 12 % of natural gas. The unique fuel and energy base has been created in East Siberia and the Far East. They produce 18.8 % of electric energy generated in the country, 13.7 % of thermal energy, extract 37.2 % of coal, and refine 11.5 % of crude oil. Although these regions have large reserves of hydrocarbon resources, a scaled production of oil and natural gas here has just started. In 2010 they produced 37 million t of oil, 31.0 billion m 3 of natural gas or 7.3 % and 4.8 % of their Russian production, respectively. At present Russia has finalized an important, long-term and labor-intensive stage of work on preparation of a great number of program documents that determine strategic development of the economy and energy sector in the East of the country to 2030 in terms of the energy cooperation of Russia with the Northeast Asia countries: Energy Strategy of Russia for the period to 2030 [2], Eastern gas program Program of creation in East Siberia and the Far East of the common system of gas production and transportation and gas supply in terms of potential gas export to the markets of China and other APR countries [3], Strategy of socio-economic development of the Far East and Baikal region to 2025 [4], Strategy of socioeconomic development of Siberia to 2020 [5], etc. These documents provide for accelerated energy development in the East of the country that will ensure implementation of the strategic lines of socio-economic development of the eastern regions of Russia and sizeable growth of possible supplies of Russian energy resources to the markets of China, Korea, Japan and other countries of East and Northeast Asia. The Energy Systems Institute of SB RAS makes a certain contribution to elaboration of the Eastern energy strategy of Russia. In the Institute carried out a great scope of works on substantiation of the energy development trends in the eastern regions of the country for the period to within the framework of studies on substantiation of the Energy strategy of Russia-2030 and by the order of the regional authorities [6-12]. The strategy of energy development in East Siberia and the Far East for the time period until 2030 was elaborated on the basis of the following initial conditions and target guidelines. 1. It is obvious that in the nearest years Russia will be unable to implement a 3

4 Asian Energy Cooperation: Risks and Barriers Irkutsk, 2012 frontal attack on undeveloped territories of East Siberia and the Far East. Therefore, the main goal is to maintain and strengthen the base for future development. The goal can be achieved by implementing the so called strategic scenario of economic development of these regions. The strategic scenario of economic development of the eastern regions supposes that their economy should approach the current level of developed European countries by the end of the studied period qualitatively and quantitatively. In this case the rates of economic growth in these regions should be higher than on the average for Russia. The share of the eastern regions in the total population size in the country is foreseen to increase as well. 2. Enhancement of energy use efficiency is a strategic priority of socio-economic development of the eastern regions of Russia. The energy use efficiency there is % lower on the average for Russia and considerably lower than in the developed European and Asian countries. The use of available energy saving potential (that accounts for % of the total energy consumption or million tce) would make it possible for the eastern regions to develop without sizeable increase in energy consumption for a long term. 3. Energy development in East Siberia and the Far East in the considered time horizon will be aimed not only at meeting their own demand for energy carriers, but at providing export supplies of Russian energy resources to the energy markets of the East Asia countries. Analysis of the energy market states in China, Korea, Japan and other countries of East Asia shows that these countries have a niche for Russian energy resources and Russia is ready to supply the following volumes of energy resources from the eastern regions to these countries on the mutually acceptable terms [13]: oil from 38 million t in 2010 to million t in 2020 and up to million t in 2030; natural gas from 13.3 billion m 3 in 2010 to billion m 3 in 2020 and up to billion m 3 in 2030; coal from 20 million t in 2010 to million t in 2020 and up to million t in 2030; electricity from 1 billion kwh in 2010 to 60 billion kwh in 2020 and up to billion kwh in Large-scale involvement of natural gas in the economic turnover of the eastern regions is a top priority of their socio-economic development. The natural gas market will be determined basically by the effective demand and the necessity to solve environmental problems. In the annual demand for natural gas in the eastern regions as a direct fuel is estimated at billion m 3. Since the potential on natural gas production in the East of Russia substantially exceeds internal demands, reliable supply of Russian natural gas to the energy markets of the Northeast Asia countries is highly probable. It should be admitted that there will be no cheap natural gas in Russia, as the country pursues the policy of adjustment of prices of energy carriers and reduction of the structure of prices of individual fuel kinds to the world ratios, which can turn out to be a constraining factor in using natural gas instead of traditional fuel kinds, e.g. coal. 5. At present the necessity of supplying not only hydrocarbon resources, but the products of advanced processing with the high value added is clearly recognized at all levels in Russia. Therefore, it is suggested that in the eastern regions of Russia production of oil products should be increased, a new industry gas chemical industry, whose products are in rather high demand in the Northeast Asia countries, should be created. 6. The oil and gas fields of the Siberian platform are known to be unique in their helium content: its reserves in natural gas are estimated at 8.5 billion m 3, which makes up above 20 % of the world helium reserves. In the long term Russia can be the first-rate helium exporter. At the same time it is necessary to bear in mind the helium extraction and its storage will naturally make the projects on development of gas fields more expensive and as a result will lead to natural gas price rise. 4

5 4. Road map for prospective energy development in the East of Russia. (1) Stages of the prospective energy development Prospective energy development of Russia s eastern regions can be divided into three major stages which differ in conditions, factors and risks of the energy and economy development in these regions: Stage 1 ( ) resource and investment development, Stage 2 ( ) investment and innovative renovation, Stage 3 ( ) innovative development. The first stage ( ). The first stage suggests an increase in the production of energy resources in the eastern regions which aims to meet the demand and create the required financial conditions for prospective capitalintensive development of the economy and energy, lay the foundation for large-scale development and updating of the main production assets and energy infrastructure, develop energy machine building, expand feedstock base, improve market for energy carriers, change the relationships between the state and business, complete the negotiations on conditions for energy export to the APR and NEA countries. The hydrocarbon resources of the regions will underlie the creation of oil and gas transportation system for conversion of East Siberia and the Far East to gas and export of hydrocarbons to the NEA countries. This stage also supposes an increase in the cross-border electricity trade with China and the beginning of electricity export to North Korea (if a mutually beneficial contract is concluded). The second stage ( ). Stage 2 will continue the implementation of large-scale capital-intensive projects aimed at the accelerated modernization of material, technical, and technological base of the energy sector in East Siberia and the Far East. The second stage differs from the first one by further increase in Gross Regional Product (GRP) growth outpacing the growth of processing and science - intensive sectors of the economy. This stage launches the innovative renovation of the industry through new types of equipment and technologies required for effective development of the energy potential in East Siberia and the Far East. Energy development of the regions will take place under the conditions of intensification of internal and external demand for traditional kinds of energy resources (coal, oil, gas, heavy oil) and an increase in demand for renewable energy due to the implementation of large-scale projects on development of production of traditional energy resources. During this period it is suggested to create a single oil and gas transportation system in East Siberia and the Far East, convert consumers in the region to gas, construct some large export oriented thermal and hydropower plants, and export large amounts of electricity to China. The third stage 3 ( ). This stage suggests an economic effect to be obtained from the large-scale use of new technologies, and equipment in the energy sector, as well as new operating principles of the energy sector itself and related sectors on the innovative basis. A considerable increase in the use of renewable energy is expected at this stage. The generating capacities and main transmission lines will be created for a large-scale electricity export to the NEA countries. Oil and gas industry with advanced processing of hydrocarbons will be built. (2) Interaction between the economy and the energy sector The economy of East Siberia and the Far East should develop at higher rates than on average in Russia since the role of East Siberia as the country outpost in the mutually beneficial cooperation with the APR and NEA countries increases. Annual rates of GRP growth in East Siberia at the first stage will make up 5-6%, at the second stage 7-8%, and at the third 6-7%. The share of population in East Siberia in the total 5

6 Asian Energy Cooperation: Risks and Barriers Irkutsk, 2012 number of Russia s population will increase up to 6% at the first stage, to 6-7% at the second, and up to 7-9% at the third stage. Annual rates of GRP growth in the Far East are estimated at 6% at the first stage 7-9% at the second stage, and at 6-8% - at the third stage. The share of population in the Far East in the total number of Russia s population will rise up to 5% at the first stage, up to 6-7% - at the second stage and up to 6-9% - at the third stage. The indices that characterize the interaction between the economy and energy sector in the eastern regions are shown in Table 3. Table 3. Primary indices of the interaction between the economy and energy sector Index 2010 Stage 1 Stage 2 Stage 3 Specific energy-grp ratio (in % of 2009 value) 100/ / / /42-45 Specific electricity-grp ratio (in % of 2009 value) 100/ / / /66-68 Share of energy sector in GRP, % 15/ / / /15-18 Share of energy costs in the expenditure of population, % Share of fuel and energy costs in the industrial production costs, % Share of investment in energy sector in the total investment into the economy of the region, % Share of energy sector in the revenues of the regional budget, % Share of energy sector in the foreign exchange proceeds from export, % Note: in numerator indices for East Siberia; in denominator indices for the Far East The presented dynamics of decrease in the energy-grp ratio in East Siberia and the Far East corresponds to the forecast indices of regional economic and energy development and is caused by an increase in the share of low 8/ / / / / / / / / / / / / / /15 20/ / / / /40-55 energy intensity products and services in the structure of energy consumption. The specific electricity GRP ratio decreases by lower rates through higher increase in the internal electricity consumption against energy consumption (Table 4). Table 4. Consumption of energy resources Resource 2010 Stage 1 Stage 2 Stage 3 Electricity, billion kwh Heat, mln Gcal Fuel for furnaces, mln tce Motor fuel, mln tce At the second stage the share of energy sector in the formation of GRP will increase thanks to large-scale development of oil and gas industry and electric power facilities. However, by the end of the stage a tendency towards decrease in this share will occur because of structural changes in the economy (decline in the share of products from feedstock industries and increase the share of processing industries). The share of energy costs in the expenditure of population will have a tendency towards growth due to an improvement in the living conditions (better provision with living area, saturation with commodities for long use, etc) as well as due to increase in the cost of energy resources. The share of energy costs in the costs of industrial production will not change much because of two mutually opposite trends: decrease in the energy intensity of the products on the one hand and increase in energy resources on the other. 6

7 As applied to the indices of energy relations between Eastern region of Russia and the countries of East and Northeast Asia we made the following assumptions. Analysis of the capabilities of the resource base of the eastern regions of Russia and energy intensity of the markets in the Asian coun- Table 5. Energy export from the eastern regions tries in terms of existing intergovernmental agreements and contracts allows us to consider the most probable amounts of energy export from the eastern region (Table 5). Energy resource 2010 Sage 1 Stage 2 Stage 3 Electricity, bln kwh Oil, mln t Natural gas, bln m Coal, mln t In order to provide the growing forecast levels of energy development in the Far East the share of investment in the energy sector in the total investment in the economy at the first stage should make up 50-55% since it is during this period when we have to lay the foundation for the main investment projects. Then the share of energy sector in the investment will decrease and at the second stage will be 30-35% and by 2030 will fall to 15-20%. The same trends will be observed in the East Siberia - the share of investment in energy sector in the total investment into the economy by the year 2015 will account for 40-50%, will decrease up to 35-30% by 2020 and up to % - by the year The forecast levels of energy development allow us to increase the share of energy sector in the total revenue of the consolidated budget of the RF entities on the territory of the Far East from 10% today to 15% in and from 15% to 20% in East Siberia. (3) Energy development: production of energy resources According to the main directions for the implementation of eastern energy strategy coal production in East Siberia in 2030 can account for mln t; oil mln t; and natural gas bln m 3. In the Far East annual fuel production by the end of stage 3 can reach mln t for coal; mln t for oil, and bln m 3 for natural gas (Table 6). Rise in the domestic energy consumption in the eastern regions and export supplies will require an increase in electricity production up to bln kwh in East Siberia and up to bln kwh in the Far East by the year At the same time the expansion of electrical network infrastructure in the eastern regions will make it possible to export mln kw of electricity to the NEA countries. Table 6. Production of energy resources Energy resource 2010 Stage 1 Stage 2 Stage 3 Electricity, bln kwh Heat, mln Gcal Coal, mln t Oil, mln t Oil refining, mln t Natural gas, bln m 3, total, including: gas for production of LNG, bln m gas for gas chemistry, bln m

8 Asian Energy Cooperation: Risks and Barriers Irkutsk, 2012 We expect a considerable increase in the amount, degree and completeness versatility of processing of different types of fuel (Table 6): the refining volume of oil will increase from 27 mln t in 2010 to mln t in 2030, LNG production from 13 bln m 3 to bln m 3, the amount of natural gas used in gas chemistry in 2030 will make up 7-13 bln m 3. Rationalization of energy balances in the region will imply: decrease in the share of coal in the supply part of the balance of East Siberia to 70% in the Far East up to 50% increase in the share of high quality fuels (in the Far East the natural gas share by 2030 may increase up to 40-45%, in East Siberia up to 2025%), drop in the share of imported fuel to the minimum required for the production technology. Change in the structure of energy balances in the region will contribute to a considerable rise in the energy efficiency of the economy in the eastern regions, i.e. decrease in the energy -, electricity-, heat- GRP ratios and increase in the efficiency of energy resources (E ER ) (Table 7). Table 7. Energy efficiency of the economy and efficiency of the use of energy resources in Russia and its eastern regions Index Energy - GRP ratio, kgce/thous.rub Electricity - GRP ratio, kwh/thous.rub Heat-GRP ratio Kcal/rub E ER of final consumption, % E ER of conversion processes, % E ER of power plants, % E ER of boiler Year, stage Russia Eastern regions Stage Stage plants, % Note: * in 2010 prices Nature protection measures and technologies to be adopted at the enterprises and facilities of the energy sector will decrease their contribution to the environmental pollution in the eastern regions by times by 2030 against 2010 and improve the environmental efficiency of the energy sector in East Siberia and the Far East. Implementation of the eastern energy strategy will require significant funding: total investment in the development of energy sector of the Far East and Eastern Siberia may account for 7-11 trillion rubles, depending on the number of investment projects implemented in However, the investment in the energy sector of the Far East and Eastern Siberia can considerably increase the budget. Tax payments from the energy sector to all budgets can rise: in the Eastern Siberia from 50 billion rubles in 2010 to billion rubles in 2030; and in the Far East from 98 billion rubles to billion rubles. Thus, the formation of new oil production centers (Krasnoyarsk, Irkutsk, Yakutsk and Sakhalin centers), development of new coal fields (Elegestskoye field (the Republic of Tyva), Elginskoye field (the Republic of Sakha, Yakutia)), increase in the number of oil-refining and petrochemical companies, and creation of new industries, gas and coal enterprises, large exporting power plants and reliable infrastructure for energy transport in the east of the country will promote economic growth in the eastern regions of Russia, improve the quality of people s lives, and strengthen mutually beneficial economic and energy cooperation between Russia and the NEA countries. 5. Conclusion: conditions and initiatives necessary to successfully implement eastern energy strategy and priority directions of mutually beneficial energy cooperation between Russia and NEA countries (1) Mechanisms for the implementation of energy strategy in the east of the country 8

9 The implementation of the energy development strategy in the eastern regions requires that a set of mechanisms be developed including economic, organizational, legislative, environmental, etc. Economic mechanisms The main economic mechanisms for the implementation of strategic directions of energy development in the eastern regions are: tax regulations, budget, investment, pricing and customs policy, etc. The main sources of investment are the funds of credit companies, budgetary funds and own funds of companies. Funding for the energy facilities can be provided not only on the basis of the devised strategies and programs that determine the development of energy sector in the Far East and Eastern Siberia, but also by the large-scale federal target programs, Investment Fund of the Russian Federation, stock market, domestic companies and companies of the other countries attracted by concessions and production sharing agreements. Taking into account the necessity to develop large reserves of mineral resources in the eastern regions, we conclude that it is reasonable to implement the projects within the framework of public-private partnership, which can stimulate investors to implement these projects. Organizational mechanisms The main organization mechanisms to control the process of implementing energy strategy at the regional level are the creation of specialized functional departments attached to regional administrations (governments) that will be responsible for the development, implementation, funding, and monitoring of the regional energy and energy-saving programs. Legislative mechanisms Regional energy legislation should include the laws on: - fundamentals of regional energy policy, - energy security of the region, - electricity supply and electrification, - heat supply (heat economy), - gas supply and conversion to gas, - environmental safety of the energy facilities in the region, etc. Environmental mechanisms The main directions in the environmental policy in the energy sector are: - Development of measures to reduce the negative effects of energy production on all components of the environment, considering the specific features of energy facilities; - Development of mechanisms for making coordinated decisions on nature protection to take into account the interests of the government, producers, population, etc. (2) Eastern energy strategy and international cooperation Implementation of the eastern energy strategy of Russia is a very difficult task. This is explained by the fact that the strategy is being introduced across vast territories, and a large number of participants from Russia and other countries are engaged in its adoption. Moreover, the measures to implement the strategy (especially inter-country energy projects) require very significant investment and close international energy cooperation. Successful mutually beneficial international energy cooperation can be achieved if at least the following five conditions are satisfied: 1. The participants should demonstrate their political will and serious intentions to implement a certain energy project beneficial to each of the countries. 2. The development of inter-country energy projects should be based on the economic and energy policies coordinated among the central government, regional authorities and business community of the countries. 3. The effects of the large-scale intercountry energy projects for the countries, regions and energy companies 9

10 Asian Energy Cooperation: Risks and Barriers Irkutsk, 2012 should be comprehensively assessed, especially due to the uncertainty about the future development, economic risks and global challenges. 4. Mutually acceptable mechanisms for the implementation of inter-country energy projects (organizational, economic, legal and other mechanisms) should be developed. 5. Inter-country projects should be developed and implemented by an international team (at all stages: from feasibility study and design work to the practical implementation). Unfortunately, it has to be admitted that today feasibility studies on large-scale and capitalintensive inter-country energy projects often lack coordination among each other, do not follow the strategy for social and economic development of Russia s entities on the territory of the Far East and Eastern Siberia, and view the formation of promising energy markets in the countries of Northeast Asia from an industrial standpoint. This in turn necessitates significant changes in the projects even in the course of their practical implementation. The need has arisen to develop a scientifically based strategy for energy cooperation between Russia and the countries of Northeast Asia. This strategy should show the order in the development of energy resources and the order and stages in their domestic and export supplies. Moreover, in the framework of this strategy, the social and economic consequences of the decisions made should be assessed not only in terms of the companies, but in terms of the regions and the entire country as well. Such a strategy can be devised only on the basis of international cooperation between specialists from research and design institutes, companies, banks, etc. and with active support of the governments and local authorities. At present, the main aspects of energy cooperation in East Asia (especially in Northeast Asia) are quite clear. The mineral resource bases in the countries supplying energy resources and the energy markets of consuming countries are studied well. More attention should be paid to the mechanisms for coordinating actions of the participants (countries, regions, companies), i.e. economic mechanisms, legislative and other initiatives related to the implementation of large-scale inter-country energy projects. A focus should be made on the energy pricing formulas. Energy and economic institutes of the Russian Academy of Sciences should and can take an active part in solving this challenging problem, which is very important for Russia and for all the countries in Northeast Asia. 10

11 References 1. Russian energy strategy until Approved by the Government of the Russian Federation by Order dated August 28, 2003 No r. Moscow, September, p. 2. Russian energy strategy until Approved by the Government of the Russian Federation by Order dated November 13, 2009 No r [Electronic resource]. s-2030.htm 3. A program for the creation of a unified system for gas production, transport and supply in the Far East and Eastern Siberia that provides for possible gas export to the markets in China and other countries of the Asian-Pacific region. Moscow p. (approved by the Government of the Russian Federation in September, 2007) 4. Strategy for social and economic development of the Far East and Baikal region until 2025 (Approved by the Government of the Russian Federation by Order dated December 28, 2009 No r) [Electronic resource] Access mode: orial_planning/strategy/federal_developme nt/346/ 5. Strategy for social and economic development of Siberia until Approved by the Government of the Russian Federation by Order dated July 5, 2010 No r 6. Energy sector of Sakhalin region: current state and prospects for development / Edited by B.G. Saneev and V.N. Tikhonkikh Moscow: Energia, p. 7. Energy sector of Amur region: current state and prospects for development / Edited by B.G. Saneev and V.E. Peskov Moscow: Energia, p. 8. Energy strategy of the Sakha Republic (Yakutia) until 2030 / Edited by G.F. Alexeyev, V.I. Kondratieva, A.A. Struchkov, N.A. Petrov, B.G. Saneev and A.F. Safronov Yakutsk Irkutsk: Media holding Yakutia, p. 9. Energy sector of Irkutsk region: current state and prospects for development / Edited by N.I. Voropai and B.G. Saneev Irkutsk: ISEM SO RAN, p. 10. Energy of Baikal region: current state, development strategy and implementation mechanisms / Irkutsk: ISEM SO RAN, p. 11. Eastern vector of Russian energy strategy: current state and future projections / Edited by N.I. Voropai and B.G. Saneev. Novosibirsk: Academic publishing house Geo, p. 12. Energy sector of the East of Russia: priorities, mechanisms and problems of implementing development directions // Region: Ekonomika i Sotsiologiya, special issue p. 13. Russian energy outlook (Supporting material in Russian energy strategy until 2030). M.: Publishing house Energia, p. 11