Putin Promises Oil Pipeline for Japan

Russian President Vladimir V. Putin has promised a pipeline that will carry Siberian oil to Japan. His recent visit to Japan, where plans for the pipeline were discussed, appeared designed to incorporate Japan back into the Asian power triangle that currently emphasizes Russian and Chinese relations. The pipeline will unite Russia – the world’s second largest oil exporter – and Japan, one of the world’s largest oil importers, although the first half of the pipeline will deliver oil to China. Japan had lobbied doggedly for the pipeline, believing it would be able to cut its dependence on imports from the Middle East by 15 percent. Putin, aware of the importance of the pipeline to Japan, is using the pipeline as an incentive to increase trade and investment from Japan. Russia-Japan trade will total $10 billion this year – less than half of the amount posted by Russian trade with China. The pipeline is a key component of an apparently earnest desire on the parts of both Russia and Japan to remedy this trade imbalance. – YaleGlobal