With the continuous development of Sino-Russian relations, the cooperation between the two sides in various fields has become closer and closer. Recently, Russian Prime Minister Mishustin visited China again, this time focusing on promoting cooperation on the Power of Siberia 2 pipeline project. However, there are some differences between China and Russia on the specific ways of cooperation. The Chinese side expressed the hope that Russia would bear the full cost of pipeline construction and asked the Russian side to give preferential treatment. The Russian side, on the other hand, believes that its financial resources are limited and cannot bear the full cost. As a result, there was a stalemate in the negotiations on cooperation between the two sides.
For Russia, Gazprom, which is responsible for the project, has already lost a lot of money due to economic sanctions imposed by the United States and Western countries. At this point, they had little reserve currency left, far enough to invest in the project. Therefore, China's request to share part of the cost undoubtedly gives Russia a glimmer of hope. The long-term consideration of the Chinese side is to extend the cooperation to the entire industrial chain through the cooperation model of upstream and downstream integration, so as to achieve a more stable and competitive cooperative relationship.
The upstream and downstream integrated cooperation model proposed by China has multiple advantages. First, by participating in all aspects of the chain, China and Russia are able to reduce costs, improve efficiency, and enhance market competitiveness. Secondly, this model is conducive to the diversification of risk management and can improve the efficiency and profitability of the energy chain. Especially for large energy consumers such as China, energy security can be better guaranteed by participating in the upstream and downstream operations of the project. For Russia, the establishment of long-term and stable cooperative relations in a large market like China will help ensure the sales of energy products and reduce the impact of market fluctuations on the Russian economy.
The development of energy cooperation between China and Russia can not only achieve a win-win situation for both sides, but also have a far-reaching impact on the cooperation between the two countries at the political and strategic level. The establishment of long-term and stable cooperative relations can strengthen the close cooperation between the two countries and promote the friendly development of bilateral relations. Therefore, China's cooperation model focuses on long-term strategic security, not just short-term interests.
Despite the differences in cooperation between China and Russia, the willingness of both sides to cooperate is clear. However, due to the sheer size of the project, every detail needs to be rigorously researched and demonstrated. At present, Chinese and Russian enterprises are actively discussing the technology, business and cooperation models of the project. However, it is still necessary to take into account various challenges in the negotiations and prepare measures to deal with them to ensure the smooth development of cooperation and the realization of mutual benefit and win-win results.
Energy cooperation between China and Russia is of great significance to the development of both countries. China's proposed model of integrated upstream and downstream cooperation can achieve a more stable and competitive cooperative relationship and provide a better foundation for China's energy security. At the same time, this cooperation model can also help Russia improve the efficiency and profitability of the energy chain, and achieve stable sales of energy products. Therefore, China and Russia should strengthen communication and consultation, and jointly formulate cooperation plans to achieve win-win development of China-Russia energy cooperation. At the same time, it is also necessary to fully consider various challenges in cooperation, and ensure the smooth progress of cooperation through scientific planning and meticulous demonstration, so as to promote the in-depth development of China-Russia relations.