The construction of the gas pipeline “Power of Siberia”, which became the biggest deal in the world gas industry, points to the emerging economic Union between Moscow and Beijing, says CGTN. As the channel, for this project, indicating the growing confidence of China, has become the chance to diversify your investments in terms of sanctions and move away from the dollar.
So, Ross. In addition to an impressive payout with the Chinese side, what benefits will Russia get from this pipeline?
ROSS CULLEN, correspondent CGTN: This is a clear indication that China is increasingly trusts Russia. Of course, we have seen how in recent years the leaders of the two countries, Vladimir Putin and XI Jinping, set to each other and friendly relations after a long period of distrust of Moscow and Beijing to each other in the cold war era. And now we see how the established trust gradually passed down from the leadership of the countries to the companies, Gazprom and China national petroleum Corporation (CNPC. — Inotv).
As can be seen, thanks to this deal, Russia facing Western economic sanctions after the annexation* of Crimea in 2014, got a chance to diversify your investments. This is the chance to work with other partners such as China, where there is a huge demand for energy, cleaner energy, which can supply Russia and its gas fields, from where originates the “Power of Siberia”.
In addition, China will also invest in the project, and again this is a chance for Russia to move away from the dollar, to reduce its stake in its foreign exchange reserves and focus on other currencies currency basket. Not necessary to rely solely on the dollars, you can also use the RMB. So thanks to this deal, Russia will replenish their CNY reserves.
All this suggests that it is the largest transaction of purchase and sale in the history of the global gas industry, and points to the emerging economic Union. This is a chance for Russia, which though is not equal to China’s economy, China ranks second in the world rankings, demonstrates the willingness to cooperate with China not only in this area. We’re also watching the strengthening and military cooperation between the two countries.
So for Russia this project is a sign of a kind of support from one of the world’s great powers, China, its investments, its infrastructure, a sign that Beijing believes that Moscow will be able to implement its obligations under the agreement and become for China a source of “clean” energy, which you mentioned earlier.
Date aired 02 Dec 2019.
* Crimea became part of Russia after it was voted the overwhelming majority of the residents by referendum on March 16, 2014 (approx. Inotv).