The Role of Fuel and Energy Sector in the Eurasian Economic Community Integration Process

The article focuses on creation of the common energy space among the Customs Union and the Common Economic Space countries. We analyzes energy markets in Russia, Kazakhstan and Belarus, natural resources potential of these countries and their energy exports, as well as pays particular attention to the current oil and gas supplies regulation within the Customs Union. The main problems emphasized in the article are the common oil and gas market establishment, harmonization of the national energy legislation, effective transit potential use, development and adoption of common rules for the oil and gas industry access, removal of duties and establishment of common tariff policy. In conclusion, recommendations for development of Russia's Eurasian integration strategy are presented. Keywords: Energy, Eurasian integration, Common Economic Space. JEL Classification: F02

Establishment and Marketing of New Oil Benchmarks in the Structure of Global Oil and Oil Products Mercantile Trade: the Russian Case

The organization of oil and oil products stock trading that requires for independent national price indicators establishment, will promote the formation of a fair prices for energy commodities, the extension of influence of the national currency on the global market and the decrease of impact of external fluctuations of global economy. In this article, the authors review the possibility of inclusion of new oil benchmarks in the structure of the global oil and oil products mercantile trade. In particular, the Russian case is the major research subject, and the assessment is made for the purpose of strengthening the country's leverage over free market prices and in the interests of the state budget and national companies. Special attention is also given to the analysis of the contemporary contract structure of the global oil market and imposed risks. The authors develop the methodological framework for oil and oil products price indicators calculation and the suggestions about the promotion and marketing of Russian oil benchmark on the international level. Keywords: oil, oil products, mercantile exchange, benchmark, global oil market, international relations JEL Classifications: F13, N70, O24, Q4

Energy Diplomacy of Turkey

The article deals with current issues of energy diplomacy of Turkey. The authors describe the main positive and negative results of Turkey's foreign energy policy in terms of the implementation of major energy projects. Geopolitical processes in the world, the conflict of interests of various countries in the political arena are important factors that affect the crude oil and natural gas pipeline projects. Particular attention is paid to the problems and prospects of cooperation between the Turkish Republic and the Russian Federation in the fuel and energy complex. The authors describe the interaction betweeen Russia and Turkey in the energy sector, including geo-economic interests of the countries in the Russian-Turkish gas dialogue. Turkey made efforts to position as an alternative gas supply route, taking advantage of concern about increasing Europe's dependence on Russian exports. Last years Turkey has set itself the important task - to turn from transit country into a regional gas hub. Ukrainian crisis increased the geostrategic importance of the Black Sea region to Russia, as well as strengthened the ambition of the Turkish side. The authors also highlight the prospects of the natural gas pipeline project from Russia via the Black Sea to Turkey and to the Turkish-Greek border, which named "Turkish stream". This project was frozen in terms of military and political processes at the end of 2015 in Syria

Energy Diplomacy of Turkey

The article deals with current issues of energy diplomacy of Turkey. The authors describe the main positive and negative results of Turkey's foreign energy policy in terms of the implementation of major energy projects. Geopolitical processes in the world, the conflict of interests of various countries in the political arena are important factors that affect the crude oil and natural gas pipeline projects. Particular attention is paid to the problems and prospects of cooperation between the Turkish Republic and the Russian Federation in the fuel and energy complex. The authors describe the interaction betweeen Russia and Turkey in the energy sector, including geo-economic interests of the countries in the Russian-Turkish gas dialogue. Turkey made efforts to position as an alternative gas supply route, taking advantage of concern about increasing Europe's dependence on Russian exports. Last years Turkey has set itself the important task - to turn from transit country into a regional gas hub. Ukrainian crisis increased the geostrategic importance of the Black Sea region to Russia, as well as strengthened the ambition of the Turkish side. The authors also highlight the prospects of the natural gas pipeline project from Russia via the Black Sea to Turkey and to the Turkish-Greek border, which named "Turkish stream". This project was frozen in terms of military and political processes at the end of 2015 in Syria

Oil Production, Refining and Transportation in Canada

The article deals with fuel and energy complex of Canada as one of the largest manufacturers of primary energy in the world, which provides up to 6 percent of the world energy supply. Only the Russian Federation, PRC, the United States of America and the Kingdom of Saudi Arabia have larger production volumes. However, oil plays the most significant role in Canada's energy exports. It is estimated that its proven reserves are sufficient to meet the demand for 140 years at current production rate. The relevance of the study, including the analysis of fuel and energy complex of Canada, is due to the fact that such comparison and synthesis of data on the amount of recoverable oil reserves, the volume of its production, imports, exports and transit of oil and oil products, the distribution of oil for transportation (via pipelines, rail, sea, road), strategic oil field, refining and transportation of oil and oil products development projects, as well as implementation of Canada's best practices in the Russian Federation, is being developed for the first time. In addition, the data given in previously published articles on the subject, due to the dynamic development of the industry, are obsolete and do not reflect the real situation

Renewable Energy in China

China is the most densely populated country in the world with high rate of economic growth resulting in higher demand for energy resources and in strive to guarantee stable supply of these resources. Chinese annual GDP growth in 2012 and 2013 was down to 7.7% comparing to 10% in 2000-2011 [7]. In 2012 and 2013 economic growth stumbled because of slowdown in manufacturing and exports, taking into account that Chinese government was eager to cut inflation and excessive investments in some segments of the market. Speaking about energy sector Chinese government is aimed at promotion of market-based pricing systems, activities for advanced energy efficiency and higher competition between energy companies, and increased investment in renewable energy resources. Considering renewables as one of many ways to diversify energy supplies, lower dependence on coal and improve environmental situation Chinese government actively supports and develops programs aimed at support of renewable energy industry in China. Chinese economic development is tightly attached to five-year plans. It seems important to mention the fact that main energy goals for current 12-th "five-year plan" are to achieve 15% renewables consumption and CO2 sequestration up to 40-45% by2020 in order to lower dependency on coal and improve environmental situation. As a result of Chinese state policy to develop renewables China achieved certain results in wind energy, helioenergetics, hydroenergetics and energy from waste recycling

Foreign Experience of Applying the Principle of "Pump or Pay" in the Field of Pipeline Transportation

This article reveals the practice of "ship or pay" principle in the US, Canada and Europe. The authors analyze the practice of concluding contracts for oil and petroleum products transportation, procedures, terms and conditions stipulated in the contract. The "take or pay" principle is a common practice in developed countries like the US, Canada and the UK. The specific feature of the United States is that the pipelines are not built only for one shipper, but rather for all market, which is caused the "open season" tradition. In Canada, "take or pay" principle applies to cover the capital costs of the carrier. The main reasons for usage of terms "take or pay" are to minimize risks of the carrier, building or expanding his own pipeline network, by guaranteeing shipper's financial benefits after the putting pipeline into operation. "Take or pay" contracts cover the carrier's obligation to provide agreed minimum amount of petroleum to the consignor within a certain period. In turn, the shipper is obliged to accept the minimum amount of petroleum and pay, regardless of the fact of acceptance of oil. "Take or pay" principle is a kind of risk-sharing mechanism, which allows to shift the risks of non-fulfillment of the contract to the shipper. Besides, the "take or pay" principle can be indirect guarantee in the context of project financing, and therefore, financing. The article emphasizes the main advantages of the application of this principle and opportunities for its use in Russia

The Impact of Oil and Gas Resources In the Arctic on the Development of the Transport System in the Region

One of the main problems of the Russian economy today is the development of the Arctic region. Given the key role of the energy sector in the economic balance of the country, as well as the problem of exhaustion of hydrocarbon resources, the Arctic is of particular interest from an economic and geopolitical point of view, ensuring the energy security of Russia. Active development of the region leads to the development of transport infrastructure, which is one of the priorities of Russia's energy policy. The issue of transportation plays a leading role in the context of the development of Arctic resources and involves a number of tasks. The first step is to ensure the safety of navigation in the Arctic ice. Also existing infrastructure needs substantial upgrading, as well as construction of new facilities (including ports, railways, roads, etc.). Of particular note is a unique transcontinental route - the Northern Sea Route. There is a need to modernize the Arctic Fleet, including the construction of modern icebreakers of the Arctic class. The current state of the port system, which does not fully meet the latest international standards, is of crucial importance as well. In addition, along the route the development of railway infrastructure is required. In addition, there is the problem of underdevelopment of the road network, which leads to a re-run and lack of access of some are as to the road network of Russia. Thus, the development of hydrocarbon resources in the Arctic region contributes to the development of infrastructure of the transport system in the region and, consequently, its economic development that contributes to the economic well-being of the country as a whole

Global Refining Industry in Retrospect, and Evaluation of Russia-EU Petroleum Products' Trade Perspectives

Oil-refining industry plays a significant role in the development of the world fuel and energy complex. In the meantime, at the current stage of this industry's development quality changes are taking place in it. Taking into account the traditional siting of refinery capacity close to consumption centers, many countries consider the possibility of building their own oil refineries to satisfy the growing domestic demand for oil products. Other countries consider the possibility of developing refineries not only for the national market, but also for export of petroleum products. Such a tendency can be observed in Russia. The article deals with current state and relevant issues of development of oil refining industry on the global scale, with the latter being largely driven by consumer demand changes. Particular attention is given to Baltic Sea region countries that are considered as potential markets for diesel fuel exports in the context of the capacity increase of oil refining in Russia. Keywords: Russia, oil, petroleum products, diesel, refining, international trade, EU, energy market JEL Classifications: F16, F63, O52, R12, L16, L7