Russian gas sales to Central Asia will rise

Significance

Historically, Central Asian countries exported gas to Russia and other former Soviet countries. However, sales to Russia declined after 2008 and China emerged as the primary export market for Central Asia. Russia is now seeking a greater role in the regional gas market.

Impacts

• Russia will continue to press for an agreement with China to begin construction of the Power of Siberia-2 pipeline.
• European demand for Russian gas will remain at historically low levels.
• Russia will seek to increase gas sales to Azerbaijan, where consumption is growing faster than supply.