Russia-China Oil, Gas Pipelines
Chinese President Xi Jinping publicly hugged Russian President Vladimir Putin in a rare display, intending to demonstrate to the world that they have sealed what they call a ‘new era’ of strategic partnership. The hug even prompted a reply from a White House spokesperson to a question. During a press conference in China at the end of the trip, Putin stated that Russia could deliver even more oil as well as gas to China. He indicated that this delivery would follow a planned route via Mongolia. Russia, facing Western sanctions following its invasion of Ukraine, is increasingly dependent on its flourishing trade with China. Beijing is also challenging U.S. supremacy in areas ranging from quantum computing to espionage and hard military power.
Putin admitted that the Russia-China oil, gas pipelines project was a complex process involving questions of pricing. However, he also asserted that China’s growing economy necessitated energy, and there was no more reliable supplier than Russia. Experts suggest that since China is not expected to require additional gas supply until after 2030, Beijing could negotiate aggressively on how much it would pay for oil and gas, if and when the second pipeline via Siberia is built. After several meetings, the two countries issued a 7000-word joint statement presenting an alternative to U.S. global leadership. Wrapping up his visit, Putin stated that both sides had confirmed their interest in moving forward with a proposed gas pipeline, the Power of Siberia 2.
Putin claimed that the Power of Siberia 2 project would also be immune to Western sanctions. He stated, “The mutual interest in implementing these projects is confirmed. Because the Chinese economy is growing and demanding the energy resources needed to support this growth. There is nothing more reliable than Russian energy supplies. I believe that’s obvious. We share a huge common border. And nobody will interfere here. Not even sanctions against tanker shipments or financial institutions.”
The much publicised hug between Putin and Xi also prompted a reply to a question at a U.S. White House briefing.
(With Reuters inputs)
