Identifying the Risk-Return Spectrum of the FSU Oil Economies

This paper quantifies the risk-return spectrum of the FSU´ oil economies, which are of high potential as China´s major crude oil-importing sources, and explores the influence of introducing the relative risk weights on the changes of the risk-return spectrum. The results show that when the risk preference of decision-makers is considered, the risk-return spectrum of the FSU turns into the low-risk with high return from the high-risk with high-return, which proves that increasing imports from the FSU is an effective way to balance out the risk from the high import dependence on the ME, and to promote the China´s energy import security.