Putin woos China with oil pipeline plan amidst Western embargo
During his visit to Beijing, Vladimir Putin announced that Moscow is considering increasing oil supplies to the Chinese market by building an oil pipeline "in the same corridor" as the planned Power of Siberia 2 gas pipeline. Earlier, he stated that Beijing had confirmed its "interest" in the construction of the gas pipeline.
Russia, which is currently cut off from Western markets due to the embargo on its fossil resources, is seeking to negotiate an agreement with China regarding constructing the Power of Siberia 2 gas pipeline. As explained by Reuters, such a move would allow Moscow to mitigate losses in the energy sector.
On the second day of his visit to China, Putin visited the city of Harbin, located in the northeast of the country. Harbin serves as a major centre of economic contact between the two countries. Putin visited a fair there where Russian companies were showcased.
Putin criticized the sanctions policy pursued by the United States. In his view, the sanctions undermine trust in the dollar. He stated that the threat of sanctions against Chinese banks that facilitate Russia's international transactions is "completely devoid of common sense" and proves the "stupidity" of Washington.
As Reuters explains, the threat of American retaliation against China's financial sector has led banks in that country to reduce cooperation with Russian companies. However, Putin assured there is a possibility of resolving the payment issues in Russian-Chinese transactions, although he did not provide details on how this would work.
"Time is on China's side"
Business Insider, citing conversations with experts, wrote on Thursday that Putin is trying to balance Russian-Chinese economic relations. Since the aggression against Ukraine, Russia has found itself in the role of a petitioner in this relationship. The offer to supply Russian gas through a new pipeline would tie both countries "in a closer geopolitical alliance" and lead to greater balance in their trade exchange.
However, as Business Insider notes, time is on China's side, and it can wait for larger gas supplies until the 2030s. Beijing is counting on the increasingly dependent and vassalized Russia to provide its latest military technologies, allowing China to make a significant developmental leap in this sector.
