Did China Bankroll Russia's Annexation of Crimea? The Role of Sino-Russian Energy Relations

Abstract

This chapter analyses bilateral Chinese–Russian energy relations, pre and post Crimea. The signing of the Power of Siberia megaproject in May 2014, only two months after Russia's annexation of Crimea, created the impression that China bankrolled Russia out of the crisis. To assess the veracity of this impression, the authors draw a longer timeline of Russian–Chinese cooperation, examining general economic data as well as Chinese involvement in four concrete energy projects managed by leading Russian energy companies. They find that, in general, deals made from 2014 onward are in line with trends that originated well before the current crisis in Russia's relations with the West, and that Chinese financial contributions to the sector are not as large as they sometimes appear.

Keywords: Russia, Crimea, China, energy, oil, gas, FDI, international affairs, annexation