in".SiberiaAt a critical juncture, China has put forward two new conditions that have caused unease on the Russian side. Russian Deputy Prime Minister Alexander ANovakLed more than 20 oil and gas ** to China to discuss these new conditions. Since the invasion of Ukraine, China has become the most important thing for Russia at the momentEnergyTrading partners, surrounded by two countriesEnergyFrequent meetings are held. China's two conditions are a one-time payment of the construction cost of the pipeline and the construction of the pipeline by China, as well as the hope that Russia will provide more favorable conditions**. There may be a lot of concern about the turning point in Sino-Russian relations, but the bargaining process in commercial cooperation is normal. From the Chinese side, such a request is not excessive.
from the relevant ".SiberiaAccording to the news of the "Power 2" pipeline, Russia has completed the planning and exploration of the pipeline, and the only thing waiting is construction. However, China has put forward two new conditions, the first is to require the Russian side to pay the cost of the pipeline construction in a lump sum, and then China will be responsible for the construction. Secondly, China hopes that Russia will be able to offer more preferential **. For these two conditions, they can be interpreted from the following perspectives.
First of all, from a financial point of view, China's request for a lump sum payment of construction costs is not unreasonable. After all,".SiberiaThe construction of the "Power 2" pipeline is costly and is expected to take six years, taking into account possible contingencies. If China chooses to build a joint venture with Russia, the two sides may have a dispute over funding issues at a later stage. Therefore, the Russian side pays the full cost of the pipeline, and the Chinese side is responsible for the construction, which can reduce the future troubles of both sides.
Secondly, in terms of **, China, as a buyer, will of course strive for the most preferential **. The ** previously proposed by the Russian side is clearly not sincere enough, and China wants Russia to increase the discount to 46%, that is, 271 per thousand cubic meters$3. This request is not too much compared to last year's Russian exports to Turkey and Europe. In addition, there is uncertainty in Mongolia's relations with the West at present, and we must minimize ** in advance to prevent ** fluctuations in the later stage.
In summary, the new conditions proposed by China in the negotiations are reasonable and acceptable. For Russia, "SiberiaThe Power 2 pipeline is an important diversification initiative for natural gas sales, which has been around for more than a decade since its design. However, after the outbreak of the Russian-Ukrainian conflict, this project has received unprecedented attention from the Russian side. Although there are many large gas fields in western Russia, such as the Urengoy, Nadem and Yangbao gas fields, the development of these fields has stalled due to the reduced demand for Russian gas in the European market. Therefore, it is necessary for China, as a buyer, to pursue the diversification of gas imports, and inEnergyEnsuring initiative in cooperation.
China does not want to be overly dependent on any oneEnergyExporting countries, which is also the reason why China proposed to continue the construction of the D-line pipeline at the summit. At the moment, China imports only a small fraction of its natural gas from Russia, with the rest** coming from Turkmenistan's onshore pipelines and contracts with Australia and QatarLiquefied natural gasLong-term ** agreements. Although China considers agreeing to build",SiberiaPower 2" pipeline, but it will take another six or seven years from completion to completion. And in this time frame, China is likely to pivot moreRenewable energyThere is a certain uncertainty about the demand for natural gas. Therefore, China is guaranteeingEnergyAt the same time, make sure also:EnergyDiversify imports to avoid putting all your eggs in one basket and prevent yourself from being tethered.
Russia sent more than 20 ** to negotiate new conditions with China, and it can be assumed that their main purpose was to get more concessions on key issues. After all, the relationship between the two countries is very close, and "SiberiaThe "Power 2" pipeline is of vital importance for Russia. In this regard, it will now depend on how much concessions the Russian side is willing to make.
Overall, China's new conditions are reasonable and acceptable. Despite the fact that ".SiberiaThe construction of the "Power-2" pipeline is a major project for Russia and requires huge money and time, but China is in no hurry to sign a contract, preferring to keep itEnergyDiversification and initiative in imports. China is hugeEnergycountries in need, but that doesn't mean we're willing to be held back by other countries. Therefore, in negotiations with Russia, it is necessary for China to fight for itself more favorable ** and more favorable terms.