The Russian side was anxious, and the original project was not negotiated, and it pushed a new proje

Mondo Finance Updated on 2024-01-31

The scale of China and Russia** has continued to grow in the past few years, and has exceeded the $200 billion mark. The cooperative relationship between China and Russia is very close, and through the leading role of the two countries and the operation of the market mechanism, the two sides can achieve various cooperation goals. Not only has remarkable results been achieved in terms of scale, but also positive progress has been made in the cooperation between the two sides in the fields of tourism and local currency settlement.

In terms of bilateral tourism, after China and Russia resumed the implementation of the visa-free policy for group tours, Chinese tourists have poured into Russia, becoming the most important destination for foreign tourists in Russia. In terms of local currency settlement, China and Russia signed a currency swap agreement, and Russia widely uses RMB in **, and said that local currency settlement has accounted for more than 90%. In addition, China and Russia are also promoting the possibility of using digital currencies. These cooperation measures show that the cooperation model led by China and Russia has achieved remarkable results.

In the structure of Russian exports to China, energy products dominate. The size of the Sino-Russian bilateral ** and Russia's economic revenues largely depend on the size of energy exports. Therefore, Russia has been actively promoting energy cooperation, the most representative of which is the "Power of Siberia-2" gas project.

However, the launch of the "Power of Siberia-2" project was repeatedly postponed. Initially, the Russian side said that the project was expected to start in 2020, but now it has changed its words to say that construction will start in 2024. This raises questions about whether the project can be completed on time. Chinese Ambassador to Russia Zhang Hanhui clearly expressed China's attitude on relevant issues, hoping to promote the project in an upstream and downstream integration mode, and develop a simple natural gas trading into a cooperation in the whole industry chain. Ambassador Zhang's remarks show China's support for the project, but there are some differences in the specific requirements.

The two sides are at odds over issues such as natural gas ** and gas pipeline planning. The Chinese side wants to fight for preferential gas **, while the Russian side wants to be able to raise ** to increase revenues. In addition, the Russian side wants to realize the transit of the gas pipeline through Mongolia. However, given the border between China and Russia and the relationship with Mongolia, direct access to China from Russia may be a better option.

All in all, there are still some undiscussed issues between the two sides on the "Power of Siberia-2" project. However, it is interesting that the Russian side does not seem to be satisfied with this project and has also launched another new project to the Chinese side, the "Vostok Oil" oil and gas project. The project aims to export oil to Asian countries such as China and India, and the Russian side is even willing to give a 10% stake to a Hong Kong, Chinese businessman. The Chinese side said that it is studying the project, showing that the two sides recognize the potential of cooperation.

Whether it is the "Power of Siberia-2" project or the "Vostok Oil" oil and gas project, it is necessary to give full consideration to the international situation and the long-term development of the country. Energy cooperation involves bulk commodities, and in addition to the planning of transportation routes, factors such as market demand and stability need to be taken into account.

At present, there are many uncertainties in the international situation and the energy market. The process of economic globalization is affected by disputes and protectionist ideologies, and there are large fluctuations in energy demand and energy. In addition, the trend of global energy transition is also accelerating, and the development of green energy and renewable energy is showing good momentum. Therefore, Sino-Russian energy cooperation needs to be flexible and innovative in the face of these changes.

Conclusion: Sino-Russian economic and trade cooperation has great potential for cooperation, but there are still some difficulties and differences in promoting specific cooperation projects. The two sides need to fully consider the market demand and changes in the international situation under the cooperation model led by the two sides, and find mutually beneficial and win-win solutions through in-depth cooperation and dialogue. Only in this way can Sino-Russian economic and trade relations and energy cooperation develop sustainably and steadily, and make greater contributions to the prosperity and development of the two countries and the region.

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