Japan and the SCO member states: New shapes of energy cooperation

Japan has traditionally built its energy policy towards Russia and the countries of Central Asia by relying on the raw materials nature of their exports; moreover, such situation met the needs of Japan, which suffers from a significant lack of its own primary energy resources and minerals. It applied the principle of “resource diplomacy” - a bilateral format of trade and economic relations, according to which, in exchange for Japanese investments in certain economic and energy sectors (including Japanese official development assistance), firm contracts to supply hydrocarbons with appreciable discounts compared to current prices in the world market were concluded. However, the institutionalization of economic cooperation in the post-Soviet space within the framework of the EAEU and the SCO led to the fact that Japan became a “third party” for the countries that joined these structures. Eventually, it complicated and expanded the system of Tokyo's interaction with the governments of Russia, Kazakhstan, Uzbekistan, and Kyrgyzstan. Today, new contours of energy cooperation are gradually forming, involving not only trade in energy resources, but also the development of transport energy infrastructure, interest in renewable energy (Russia and the Central Asian countries have suitable natural and climatic conditions for its development), discussions on joint projects in the field of new alternative types of energy, for example, hydrogen energy. As for the principles of Japan's energy cooperation with India and China, which also belong to resourcedeficient countries, the main emphasis is put on the supply of energy and transport equipment from Japan, as well as investments by Japanese companies in the construction of various energy infrastructure. The unification of Russia, China, India, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, and Uzbekistan within the SCO significantly increases their international authority and helps them to conduct a more independent and balanced foreign trade policy.

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