Author Topic: Charmed by India, Russia is so no longer over the moon for China (Read 633 times)

hubag bohol · « **on:** July 20, 2015, 03:14:59 PM »

http://asia.nikkei.com/
July 12, 2015 7:00 am JST
TAKAYUKI TANAKA, Nikkei staff writer

MOSCOW -- While President Vladimir Putin is starting to put a little distance between Russia and China, he is also cozying up to India.

The change of course reflects not only stagnant progress in Russo-Sino projects, such as the construction of two natural gas pipelines to China, but also Russian wariness of China's advance into Central Asia.

At a summit of BRICS nations -- Brazil, Russia, India, China and South Africa -- that began Wednesday in the Russian city of Ufa, Putin appeared to prioritize India over China.

As the host of the summit, Putin shook hands with Chinese President Xi Jinping and smiled before photographers ahead of their meeting.

But the 50-minute powwow was less friendly than previous get-togethers; the mood even grew foul from time to time, according to a person familiar with the session.

Unlike past summits that produced agreements on major projects, this time Putin and Xi merely confirmed principles, such as the promotion of bilateral trade.

In contrast, Putin and Indian Prime Minister Narendra Modi talked for an hour and a half, longer than scheduled. The two agreed to cooperate in nuclear power plant construction and defense technology.

Putin was even playful, saying he would like to try yoga, which originated in India and is something Modi practices.

With Russia being economically sanctioned by the U.S. and Europe due to the Ukrainian crisis, Putin has held a series of meetings with Xi to emphasize the closeness of their two countries' relations.

His delicate turn from this course is traceable to energy. Putin would have liked China to move more quickly toward Russo-Sino cooperation in this field.

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hubag bohol · « **Reply #1 on:** July 20, 2015, 03:15:41 PM »

Putin and Xi last year signed an agreement calling for the two countries to build pipelines to send natural gas from East and West Siberia to China. One pipeline would carry an annual 38 billion cu. meters of gas; the other would bring 30 billion cu. meters to China, which would keep buying the gas for 30 years. Putin touted the accord as a symbol of his Asia Shift policy.

But people familiar with the project say that what Russia calls its Power of Siberia plan is behind schedule. While Russia began construction on its end in last September, the work in China only began in June.

The delay on the part of China is partly attributable to Beijing's discontent with the price, which was set in May 2014, right before gas and crude oil prices began to plunge.

In addition, the deprecation of the ruble has made it difficult for Russia to procure construction equipment from U.S. and European suppliers. In March, Reuters reported that the scheduled completion of the pipeline might be put off from 2018.

Furthermore, China is in no hurry to build a pipeline from West Siberia since it can procure inexpensive gas from Turkmenistan.

Putin and Xi agreed Wednesday to "reinforce support" for the two pipelines. But few observers expect these words to push the projects along.

On another note, the Putin administration is growing wary of China's "one belt, one road" plan to expand its influence across Central Asia.

The China-led Asian Infrastructure Investment Bank will serve as the plan's driving force. This explains why Putin on June 20 stressed the importance of AIIB transparency while meeting the heads of international news agencies.

Among European countries that will participate in the AIIB, word is starting to circulate that Russia wants to form a bloc of member states with the purpose of keeping China's ambitions in check, a diplomatic source said.

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Author Topic: Charmed by India, Russia is so no longer over the moon for China (Read 633 times)

hubag bohol

Charmed by India, Russia is so no longer over the moon for China

hubag bohol

Re: Charmed by India, Russia is so no longer over the moon for China