Russia Wants Another Major Gas Pipeline To China

OilPrice.com: Russia Eyes Another Massive Gas Pipeline To China

The Chinese and Russian leadership have over the years intensified political and economic collaboration. Troubling relations with the West in general and the U.S. in particular are increasingly driving Beijing and Moscow into each other's arms. The countries' economies are highly complementary, which is an opportunity for further integration. While China has become the world's factory and an important technological powerhouse, Russia is extremely wealthy in terms of energy and minerals.

The obvious advantages have led to the landmark $400 billion ‘Power of Siberia pipeline’ agreement for the export of natural gas from Russia’s far east to northern China. On top of this success, Gazprom and Moscow have been pushing for the 'Power of Siberia-2 pipeline’ from Western Siberia to China’s Xinjiang region. The proposal has been met with a lukewarm response from Beijing because the region is already well-supplied with Central Asian gas. However, due to the Coronavirus pandemic and Gazprom’s adjusted plan, the Power of Siberia-2 project is gaining momentum.

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WNU Editor: I do not think this second pipeline is going to happen. When the landmark $400 billion ‘Power of Siberia pipeline’ agreement for the export of natural gas from Russia’s far east to northern China was made a few years back, my Chinese contacts told me that China got the short end of this agreement, paying for gas that they could get cheaper elsewhere. Today, global gas prices are now at the lowest that they have been for years, but China is still paying a premium for Russian gas. Not a smart business move for China if you ask me. And then there is the U.S. - China trade tensions. Relations may be tense between China and the U.S., but China knows that its long term economic interests must include having access to US markets. Buying surplus American energy is one of US the conditions to make this happen.

Tensions On The China-Russia Border Because Of Covid-19

Suifenhe is a county-level city in the northeastern province of Heilongjiang with a population of 70,000. It shares a 27km-long border with Russia and is the only Chinese city in which trading with the Russian rouble is legal. The cross-border railway is an important freight transport link but most travellers arrive at the Suifenhe checkpoint having endured a three-hour bus ride from Vladivostok. China temporarily shut the Suifenhe checkpoint on April 7 to contain the cross-border spread of the coronavirus.

The Diplomat: COVID-19: Trouble on the China-Russia Border

China closed its border to prevent imported cases from Russia. Now Russians fear a surge in infections from stranded Chinese travellers.

Suifenhe is a county-level city on the eastern edge of China’s 4,300-kilometer border with Russia. It is 2,000 km away from Wuhan, where the COVID-19 crisis began late last year, and until recently, the epidemic may have felt quite distant.

Locally, Suifenhe is best known for a series of increasingly extravagant national gates in its land port, which are designed to project China’s progress over recent decades, in the face of Russia’s simultaneous decline. During the current pandemic, however, this land port was repurposed as a collective quarantine site for 1,479 Chinese citizens.

This is the result of the hasty return of Chinese citizens domiciled in Russia, which has seen Suifenhe replace Wuhan as the new focal point in China’s domestic struggle to contain COVID-19. As of April 20, 2020, almost 2,500 nationals had re-entered China via the city’s land port. Of them, 377 were diagnosed with COVID-19, with 27 designated as “asymptomatic” cases in China’s terminology.

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Update: Russia’s Covid-19 surge means China cannot fully relax its guard (SCMP)

WNU Editor: Russia was one of the first countries that closed its borders with China when the Covid-19 outbreak was spreading in China, and was widely criticized by Beijing. Now Beijing has closed its borders with Russia, and telling its own citizens stuck in Russia that they are on their own.

Will Russia Stay 'Neutral' As US-China Tensions Rise Over The Origins Of The Covid-19 Coronavirus Pandemic?

CNBC: Russia tries to stay neutral as US-China tensions rise over coronavirus’ origin

* Putin’s spokesman told CNBC that Russia can’t support a U.S. investigation into the source of the virus.
* Russia is an ally of China, but Russian President Vladimir Putin is also on good terms with his American counterpart.
* Sources told NBC News last week the country’s intelligence community was examining whether the coronavirus emerged accidentally from a Chinese lab.

Russia has sought to distance itself from a dispute brewing between the U.S. and China over the origin of the coronavirus, saying it can’t support a U.S. investigation into the source of the virus.

The comments to CNBC by Dmitry Peskov, Russian President Vladimir Putin’s spokesman, come after current and former U.S. intelligence officials told NBC News last week the country’s intelligence community was examining whether the coronavirus emerged accidentally from a Chinese lab.

″This issue was never discussed by our two presidents,” Peskov said Tuesday, when asked if Putin had discussed the matter with his U.S. counterpart.

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WNU Editor: The above article is 10 days old, and a lot has happened in Russia in the past ten days. The country is now under lock-down, and the number of coronavirus cases have exploded. So while the Kremlin may push the public line that they are not interested in supporting calls to investigate China's actions that have led to this pandemic, among all of my family members, friends, and contacts in Russia the altitude is very different. They are really pissed-off at China.

Russian President Putin And Chinese President Xi Hold Phone Talks On Covid-19 Pandemic

China's President Xi Jinping (R) and Russia's President Vladimir Putin, pictured November 2019, spoke after the US criticised China for not sharing information on the virus more quickly (AFP Photo/Pavel Golovkin)

CGTN: Chinese President Xi holds phone talks with Putin on COVID-19 pandemic

Chinese President Xi Jinping and his Russian counterpart, Vladimir Putin, spoke over phone on Thursday night, reaffirming mutual support in the fight against COVID-19 and rejecting politicization of the pandemic.

As the coronavirus disease is spreading around the globe, Xi said, all countries are faced with the arduous task of tackling the epidemic.

Recalling that he and Putin held two telephone conversations in a month to exchange views and coordinate positions on how to better cooperate in epidemic prevention and control, Xi said that has once again demonstrated the high level of China-Russia relations.

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WNU Editor: I have been told that it was China that initiated this phone call. If true, this tells me that international condemnation on how China treated this pandemic at the beginning is beginning to hit a nerve. Chinese President Xi basically wants to know who can he rely on to support him when demands for answers on the how China responded to this pandemic at the beginning start to grow .... and you can take this to the bank, they will grow with time.

More News On Presidents Putin And Xi Jinping Holding Phone Talks On Covid-19 Pandemic

Xi Jinping, Vladimir Putin held telephone conversation -- TASS
Putin and Xi See Mutual Support Amid Pandemic as Proof of Special Bilateral Ties - Moscow -- Sputnik
Putin and Xi Attack Attempts to Blame China for Late Virus Response -- Moscow Times/AFP
Russia Defends China's Record on Coronavirus Response Amid U.S. Attacks -- Newsweek
Xi Jinping: China, Russia should safeguard global public health security -- CGTN

Are Growing China - Russia Ties Due To The U.S.?

SCMP: China and Russia forge deeper ties thanks to their common enemy: the United States

  * Inauguration of a new US$55 billion gas pipeline this week helps cement increasingly close Beijing-Moscow ties that are moving beyond economics into security
  * Many observers say the two countries’ growing security cooperation may evolve into something closer to a military alliance

On Monday, Russia turned on the taps on for a US$55 billion pipeline that will pump natural gas to the energy-hungry Chinese market – the latest step in the “new era” of increasingly close ties between the two countries.

Presidents Xi Jinping and Vladimir Putin marked the occasion by getting together via video link and exchanging the usual pleasantries. But beyond the warmth and talk of expanding cross-border business, the two countries are being driven together by a common enemy: the United States.

For that reason, relations are expanding beyond broader economic ties to deeper security cooperation, and analysts say that may eventually develop into some form of military alliance.

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WNU Editor: I hate it when columnists use the word "enemy" in describing the current state of U.S. - Russia/China relations. The better word is "competitor" and/or "customer". China is a big customer for Russia's resources and military tech, and both sides are grateful for this business. As for their military cooperation .... it stems more from their concerns on what is happening in Asia (war in Afghanistan, India - Pakistan tensions, Islamic terrorism, North Korea, border disputes, etc.) than what the U.S. is doing. That is not to say that there are some tensions with the U.S.. There are after-all a number of current geopolitical competitions between Russia/China and the U.S.. The U.S. is bolstering it alliances with its allies in Asia, much to the chagrin of Beijing. And Russia is concerned about NATO's buildup at its borders. But this talk about a grand China - Russia military/security alliance to counter the U.S. has been around for decades. And in my opinion it is not going to happen. Russia's political and cultural focus is on the West, and it will be for the next few centuries. As for the East, that is where Russia's economic focus will be, especially when it comes to selling resources. As for the Chinese. They are competing economically with the U.S. for a share of global trade and markets. Disputes over companies like Huawei is just a taste on what is going to happen. But these economic conflicts are not going to push Russia and China to form a deeper alliance.

The Growing Russia-China-Iran Alliance

Credit: Russian Presidential Press and Information Office

Rajeswari Pillai Rajagopalan, The Diplomat: What’s in the Growing Russia-China-Iran Trilateral Convergence?

Potential security engagements among the three have spotlighted their increasing convergence.

While much of the focus in terms of minilateral alignments in the Asian region tends to be on those involving U.S. allies and partners, be it the Quad or U.S.-Japan-ROK trilateral dynamics, there are other arrangements beyond this as well. Of particular note are the arrangements that have been forged by China and Russia over the past few years.

One of these is the China-Russia-Iran relationship. Like many other arrangements, this represents the outgrowth of the combination of existing links between the three countries and recent convergences due to various trends and developments, including growing opposition to the United States that has risen further under President Donald Trump. And it continues to attract headlines about other countries that could join as well, including Pakistan.

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WNU Editor: For China it is all about oil. For Russia, it is providing energy to China and having allies in the Middle East. For Iran it is selling oil to China, and having security guarantees from both China and Russia.

Russian President Putin And Chinese President Xi Jinping Open First Giant Gas Pipeline Between Russia And China

Daily Mail/AFP: Vladimir Putin and Xi Jinping open first giant gas pipeline between Russia and China as part of $400billion deal

* The pair discussed their new pipeline via video link during televised ceremony
* Jinping hailed the 'Power of Siberia' pipeline as a symbol of cooperation
* 1,850-mile pipeline will supply China with 1.3 trillion cubic feet of gas annually

Russia and China today launched a giant gas pipeline linking the two countries as part of a major $400billion deal to cement Moscow as the world's biggest gas exporter.

Talking via video link during an elaborate televised ceremony, Russian leader Vladimir Putin and Chinese counterpart Xi Jinping hailed the 'Power of Siberia' pipeline as a symbol of cooperation.

'Today is remarkable, a truly historic event not only for the global energy market, but first of all for us and for you, for Russia and China,' Putin said.

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WNU Editor: This is also a big symbol on how relations between the two countries are changing .... Russia and China finish first road bridge connecting two countries (ABC News Online).

More News On Today's Opening Of The First Giant Gas Pipeline Between Russia And China

Putin and Xi oversee launch of landmark Russian gas pipeline to China -- Reuters
Putin, Xi oversee launch of massive Russian gas pipeline to China -- France 24
Russia, China launch gas pipeline 'Power of Siberia' -- DW
Russia Begins Sending Natural Gas To China As Putin And Xi Open New Pipeline -- NPR
Xi, Putin witness launching ceremony of China-Russia east-route natural gas pipeline -- Xinhuanet
Xi Jinping, Putin witness launch of China-Russia east-route natural gas pipeline -- CGTN
First of three Russian gas pipelines inaugurated -- Asia Times

The China-Russia Alliance Won't Last

Reuters

James Jay Carafano, The National: Why the China-Russia Alliance Won't Last

Beijing and Moscow don’t even have to pretend the liberal world order is a speed-bump in their joint ventures. Both happily engage with the world’s most odious regimes, from Syria to Venezuela. And, of course, neither has any compunction about playing dirty when it serves their interests.

So, now everybody wants to be Bismarck. They see themselves shaping history by artfully moving big pieces on the geostrategic chessboard. And one gambit they just can’t resist is moving to snip the growing bonds of Sino-Russian cooperation.

My advice to them: Just stop.

Fears of an allied China and Russia running amok around the world are overblown. Indeed, there is so much friction between these “friends,” any attempt to team up would likely give both countries heat rash.

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WNU Editor: The current Russia - China relationship is primarily based on economics. Military and political cooperation is playing a role, but these are junior issues when it comes to trade and economic cooperation. As long as both sides feel that they are benefiting from this cooperation, they will continue to deal with each other. But Russia's long term focus is with Europe, not China. This Russian focus on Europe is based on culture and history, and once sanctions and political tensions are gone, and they will be gone one day, my prediction is that China will not be a priority for the Kremlin.

China-Russia Joint Exercise Is Sending A Message To The World

A Russian A-50 military aircraft flies near the disputed islands called Takeshima in Japan and Dokdo in South Korea, in this handout picture taken by Japan Air Self-Defence Force and released by the Joint Staff Office of the Defense Ministry of Japan July 23, 2019. Joint Staff Office of the Defense Ministry of Japan/HANDOUT via REUTERS

AFP: China-Russia joint exercise sends a message to Washington

Beijing (AFP) - An unprecedented joint China-Russia bomber patrol over disputed territory off the coast of South Korea and Japan was a "massive development" in their bid to challenge US influence in the region, analysts said Wednesday.

The joint patrol caused outcry from Washington's two main allies in the region after both Tokyo and Seoul claimed a Russian plane violated their airspace.

Seoul said a Russian warplane twice entered South Korean airspace near the disputed Dokdo islets -- which Tokyo also claims and calls Takeshima -- and that it fired warning shots in return. Japan also said it scrambled fighter jets in response.

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More News On China-Russia Military Cooperation

As South Korea fires on Russian jets, why are Vladimir Putin and Xi Jinping teaming up? -- Telegraph.co.uk
China Promises Further Military Cooperation With Russia -- The Wall Street Journal
Joint Russian and Chinese air patrol heightens tension in Korean peninsula -- The Guardian/Reuters

The Putin-Xi Bromance Continues

Daily Mail: Putin and friends: Russian leader meets Erdogan, Xi and the Emir of Qatar as he attempts to stamp his authority on Asia and the Middle East while Iran's president doubles down on nuclear ultimatum

* Putin helped Xi celebrate his 66th birthday by presenting him with ice cream
* The Russian President also met Erdogan and other political figures in Tajikistan
* It comes as Iran has been accused by the US of attacking oil tankers in the Gulf

Vladimir Putin was pictured alongside President Erdogan, Xi Jinping and the Emir of Qatar as he flew into Tajikistan for a summit.

The Russian President attended the summit with other world leaders as he attempts to cultivate closer ties with China and the Middle East as amid growing tensions with the US.

Putin was pictured shaking hands with Xi and enjoying an informal chat with Erdogan as the conference kicked off on Saturday.

It comes in the same week the US accused Iran of carrying out Thursday's attacks on two oil tankers in a vital oil shipping route at the mouth of the Gulf. Tehran has denied having any role.

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More News On The Putin-Ci 'Bromance'

Russia's Putin gives China's Xi ice cream on his 66th birthday -- Reuters
China-Russia ties turn icy in a sweet way as Vladimir Putin gifts Xi Jinping his favourite treat -- SCMP
Ice cream and cake: Vladimir Putin hosts birthday party for Xi Jinping – video -- The Guardian
Putin Presents China's Xi Jinping With Russian Ice Cream on His Birthday (PHOTOS) -- Sputnik
A cake, a vase and... a BOX of ice cream: Putin’s birthday gifts that blew Xi Jinping away (PHOTOS) -- RT
Why the Putin-Xi bromance is a sign of things to come for Russia and China -- Danil Bochkov (SCMP)

The Growing Chinese - Russian Alliance

Chinese Vice President Xi Jinping (R) meets with Russian President Vladimir Putin, who came to pay a state visit to China and attend a summit of the Shanghai Cooperation Organization (SCO), at the Great Hall of the People in Beijing, capital of China, June 6, 2012. [Photo/Xinhua]

Russia, China Pledge To Boost Ties On Trade, Foreign Policy, Military -- Voice of America

Russia and China have pledged to give priority to development of bilateral ties and to oppose foreign intervention in Syria.

Russian President Vladimir Putin arrived in China Tuesday for a three-day visit expected to focus on the Middle East, energy cooperation and regional trade policy.

Mr. Putin, who is making his first trip to Asia since starting his third term as president last month, met with Chinese President Hu Jintao soon after his arrival.

Mr. Hu announced their agreement at a joint press conference.

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More News On The China - Russia Alliance

China, Russia sign joint communique to deepen cooperation -- Xinhuanet
China, Russia agree to enhance strategic partnership -- China Daily/Xinhuanet
Putin emphasizes military ties with Chinese VP -- CBS
Putin Emphasizes Military Ties with China -- Time/AP
Russia turns east to embrace looming China -- Reuters
Putin, Hu meet on rising Russia-China partnership -- Bloomberg Businessweek
China, Russia Oppose Intervention In Syria, Attacks On Iran -- Radio Free Europe

A Growing China - Russia Military Alliance

Joint Naval Drills Between Russia And China Highlight Warming Ties -- Asia One

CHINA - The joint naval exercises that China and Russia launched on Sunday morning highlight the warming ties between the militaries and growing cooperation under the China-Russia strategic partnership.

The exercises near Qingdao, Shandong province, will last six days and focus on joint maritime air defense, anti-submarine tactics, maritime search and rescue as well the recovery of hijacked vessels, according to China's Defense Ministry.

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More News On Joint Russia - China Naval Exercises

Russia, China Complete First Stage of Naval Drills -- RIA Novosti
Russia, China trade naval know-how in drills -- RT
Russia and China are intensifying cooperation in the military sphere -- Voice of Russia
China, Russia Hold Joint Military Drills -- China Digital Times
Sino-Russian drills enter live-fire stage -- China Daily
Russia and China: common goals and common concerns -- Voice of Russia

Why Russia And China Are Now Becoming 'Best Friends'

Russian Prime Minister Vladimir Putin and Chinese Prime Minister Weng Jiabao. RIA Novosti / Aleksey Druzhinin

Vladimir Putin Begins Key Visit To China -- The Telegraph

Vladimir Putin has arrived in Beijing for a key visit that will include negotiations over a $1 trillion (£640 billion) gas deal.

Mr Putin, who landed with a 160-strong delegation of tycoons and bureaucrats, is making his first foreign trip since he announced his intention to return as Russia's president.

Next year will be a year of political transition for both Russia and China, and analysts said Mr Putin would be keen to build ties with China's next generation of leaders.

Zhang Jianrong, a professor at the Shanghai Academy of Social Science, a government think tank, said Mr Putin would have the opportunity to meet Xi Jinping and Li Keqiang, the two men who are likely to take over as China's president and premier in 2012.

"This is a special visit," he said. "He should be able to have a good talk with China's next generation of leaders and begin to build a private relationship.

This is quite important for both countries."

My Comment: This alliance is only natural .... China needs resources and energy, Russia needs money. But I must (reluctantly) give credit to Putin .... he is looking at the big picture.

And what is the US response to all of this .... sighhh .... a possible trade war.

China, Russia Ditch The U.S. Dollar

Russian Prime Minister Vladimir Putin. © RIA Novosti. Alexey Drujinin

Russia, China Lift Restrictions On Trade In Ruble And Yuan -- RIA Novosti

Russia and China have lifted restrictions on trade in the rubles and the yuan in a bid to boost bilateral trade and economic cooperation, following the results of a meeting between Russian Prime Minister Vladimir Putin and his Chinese counterpart Wen Jiabao on Tuesday.

"This is a serious step forward towards creating better trade conditions and this is the result of the strengthening of our economies," Putin said.

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More News On China - Russia Abandoning The U.S. Dollar

China, Russia quit dollar -- China Daily
Putin Says Russian Yuan Trade to Start Next Month -- Bloomberg Businessweek
China Starts to Trade Yuan Against Ruble -- Moscow Times
Rouble trades in China, more currenices to come -- Forexpros
Russia leading provider of armaments, helicopters and engines for China's airplanes -- Avionews
Should You Be Scared That China And Russia Just Agreed To Drop The Dollar? -- Business Insider

My Comment: This is a natural relationship for both countries to pursue. They are neighbors, with China purchasing technology and resources from Russia, and Russia buying products and goods from China. Trade is very small now .... but the structure has now been put to expand trade significantly .... and expand it will. This is very big news .... and ... of course .... it is being ignored by the U.S. main stream media.

As for the U.S. dollar .... it's decline in importance is not surprising. Reckless spending and uncontrollable debts has led the U.S. dollar to where we are today .... and it can only get worse as the same policies continue. The rest of the world is now realizing this, with the only exception being most of the American public and it's political class.

Say Hello To The World's New Realignment Of Super Powers

Chinese Foreign Minister Yang Jiechi (C), Russian Foreign Minister Sergei Lavrov (R) and Indian Minister of External Affairs S.M. Krishna pose for a group photo after the Meeting of Foreign Ministers of China, Russia and India in Wuhan, capital of central China's Hubei Province, Nov. 15, 2010. (Xinhua/Cheng Min)

China, India, Russia Begin Trilateral Talks -- Times Of India

BEIJING: China was dealing with leaders from four Asian countries, including foreign minister S M Krishna, at the same time on Sunday. Beijing's multi-level and simultaneous engagement and efforts to enlarge its influence in Asia is bound to impact the India-China talks.

Krishna, Chinese foreign minister Yang Jiechi and their Russian counterpart, Sergei Lavrov began trilateral talks in the central Chinese city of Wuhan on Sunday. Chinese vice-president Xi Jinping landed in Singapore on Sunday to talk with Prime Minister Lee Hsien Loong. This was preceded by a meeting between the country's president Hu Jintao and Japanese prime minister Naoto Kan on Saturday.

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More News On The Russia - China - India Trilateral Talks

China, India, Russia vow to work together -- Breitbart/AFP
Chinese, Russian, Indian FMs discuss cooperation in int'l, regional affairs -- Xinhuanet
Russia, India, China won't cross U.S. on AfPak -- The Hindu
Russia, China, India summit calls for UN reforms -- Hindustan Times
China, India, Supports Russia to Join World Trade Organization -- Bloomberg Businessweek
India, China and Russia call for global efforts to promote world growth -- One India
Joint Communiqué of the Tenth Meeting of the Foreign Ministers of the People’s Republic of China, the Russian Federation and the Republic of India -- The Hindu