Review of the Construction of the Central Asia Pipeline in the Post-Cold War Era: Focusing on Energy Cooperation and Conflict between Russia and Turkmenistan
Authors:   Asia-Europe Perspective Association, Yun Yeong-Mi 
Published: June 2018

This study’s objective is to analyze the strategic transformation related to the cooperation and conflict arising from the construction of a gas pipeline between Russia and Turkmenistan. The said analysis is based on the aspects of the pipeline’s political economy, an international energy corridor, which is a major issue in international energy cooperation and competition in the post-Cold War era. The major analysis level is the diversification strategy of Turkmenistan’s gas pipeline connection, which emerges as an important variable in increasing the mutual energy dependence between Russia and Turkmenistan. It is to review the participation in Nabucco pipeline connection, an exclusive pipeline toward Europe and the new connecting line between China and Turkmenistan will become a restricting factor on the gas cooperation between Russia and Turkmenistan and a diversionary factor for seeking cooperation of the three involved countries (Russia-China-Turkmenistan), centering on China and the Shanghai Cooperation Organization (SOC).
The priority of Russia’s strategy toward Central Asia changes depending on time and political situation at home and abroad. In terms of politics, Turkmenistan and Russia contributed to bilateral cooperation and security. In economic terms, it is considered as the most important country in increasing trade volume and complementary energy cooperation. As natural gas constitutes a dominant position in energy production and consumption structure of Russia, it becomes of great importance. Since the 2000s, Russia has been strengthening its position as a recourse power as petroleum production and the export and production of natural gas as energy source replacing petroleum has rapidly increased Russia’s strategy is to enter the main stream of the world along with implementing economic reconstruction through the expansion of export to Europe and Northeast Asia.
Gazprom leads Russia’s gas industries, exporting one-third of its gas output to European Union countries, which amounts to three-fourth of Gazprom’s total revenue. Major gas provider of this vast amount of revenue is Turkmenistan. Russia’s gas export is restricted by Turkmenistan and mutual interdependence on Turkmenistan is high in gas trade. The energy cooperation between Russia and Turkmenistan through existing and new pipeline connection is going full-speed in international politics. Turkmenistan, which is emerging as a gas power in Central Asia, has a great effect on gas exports to Europe as a major gas provider of Russia, centering on CPC and CAC line managed by Russia’s Gazprom.
Recently, Turkmenistan’s domestic and foreign energy diversification policies, such as the expansion of energy cooperation between Russia and Turkmenistan, discussion on Nabucco gas pipeline construction connecting to the European region without passing by Russia and debate on the proper price of gas provision to Russia has emerged as major variables. However, Russiais seeking a strategic transition through the construction of a new line(South Stream Pipeline) and expansion in the quantity of goods imported via the existing line, despite the fact that Turkmenistan is proceeding in increasing its purchasing price of gas and export diversification policy toward Europe, China and Iran, and other countries. Energy cooperation between Turkmenistan and China, which is emerging as an active actor, establishes a foothold for SOC’s possibility of becoming an energy cooperation organization. Russiaacts as partner, not competitor, in its energy cooperation with Turkmenistan. The interdependence of energy cooperation between Turkmenistan and Russiais considered to concentrate on the strengthening of the long-term energy cooperation between both countries, centering on the existing relationship between two countries and SOC in the light of geopolitical and geo-economic benefits.