ABSTRACT
Post-Soviet Russia has undergone dramatic changes during the last 30 years, with the state playing a gradually strengthened role. Cooperation between the Russian state and foreign investors has been crucial for the development of oil and gas projects in the Russian Arctic. This chapter builds upon three case studies of Russia-based Arctic oil and gas projects: Kharyaga, Shtokman, and Yamal. Considering these projects and their development over time, we identify various forms of cooperation developed by the Russian state together with state-owned and private domestic companies and with foreign investors originating in the West and the East. In each project, the partners managed to develop a workable form of cooperation due to the circumstances. In the case of Kharyaga, starting with production sharing agreement with companies from the West, the Russian state gradually increased its ownership share. In the case of Shtokman, a superior structure was introduced by the state-controlled company Gazprom at the outset. In the case of Yamal, the state stepped in on the financing side to counterbalance the involvement of foreign investors, especially from China. Each of these forms of cooperation is associated with own potential contradictions. In light of the discussion of strong and weak sides of these forms of cooperation, this chapter outlines potential dilemmas for the Russian state as regards future oil and gas projects in the Arctic.
