Russia Looks East for New Energy Consumers

With its oil and natural gas exports to Europe declining, Russia is expanding its energy export networks to Asia. Russia has long relied on Europe as its primary customer, but over the past two years Moscow has worked to build out its energy infrastructure to the east as a way of diversifying its customer base. Today, it has enough capacity to divert about half of its oil exports to eastern markets. Because oil and natural gas are the chief sources of revenue for the Russian government, the Kremlin wants to ensure it has the flexibility to shift routes and destinations as demand in different regions rises or falls, somewhat insulating the country from volatility in energy markets.