MOSCOW: Russian President Vladimir Putin’s upcoming visit to China for the Belt and Road Forum carries immense significance for the two nations.
This high-stakes visit takes place as Beijing celebrates the 10th anniversary of its Belt and Road Initiative (BRI), marking a decade of building extensive infrastructure connecting Asia, Europe, and Africa.
As the Russian president heads to China, the focus is on energy deals, infrastructure expansion, and the evolving geopolitical landscape in the wake of the Ukraine invasion.
While Putin is expected to advocate for new energy deals and an expansion of infrastructure projects, including those that run through Russia, there’s a cautious tone in the backdrop due to Russia’s recent military actions.
Experts note that China has been prudent in its approach, refraining from associating with Russia’s aggression and instead focusing on purchasing Russian energy resources at discounted prices.
The nature of the deals or the absence thereof during this visit could provide insights into China’s evolving geopolitical stance. Traditionally, Chinese investments in Russia were primarily centered on the energy sector. However, a shift in Russia’s economic priorities led to a change in perspective.
Russia’s redirection of trade toward Asia, facilitated by the completion of critical infrastructure projects, aligns with its broader strategic objectives. This shift is exemplified by the transformation of the Karakoram Highway into an all-weather road, promoting trade, tourism, and cultural connectivity.
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For China, the significance of transport corridors through Russia has diminished due to changes in trade routes and rising geopolitical pressures. Trade via Central Asia is gaining momentum, making it increasingly important for both China and the region.
Energy cooperation remains a focal point of Russia-China relations, with Moscow seeking funding, long-term off-take contracts, and access to oil and gas exploration technologies. Power of Siberia 2, a mega-pipeline through Mongolia, and the Sakhalin 3 oil and gas development project are prominent topics of discussion during Putin’s visit.
Sealing the Power of Siberia 2 deal would be a significant accomplishment for Putin, showcasing the depth of the energy partnership between the two nations.
Beyond energy, potential agreements related to cross-border financial systems, the Arctic, and the Northern Sea Route (NSR) are also on the agenda. Linking Russia’s System for Transfer of Financial Messages (SPFS) with China’s Cross-Border Interbank Payment System (CIPS) could expedite cross-border payments as the use of China’s currency in Russian trade grows. In the Arctic, discussions on China’s involvement in the development of the NSR, a key maritime trade route, are anticipated.
Putin’s visit signifies a pivotal moment in the evolving dynamics of Sino-Russian relations. The outcomes of this high-profile meeting will shed light on the future of energy cooperation, trade, and geopolitical partnerships between these two global powers.
