Page 4 - AsiaElec Week 48 2022

AsiaElec COMMENTARY AsiaElec

Sino-Russian ties continue to

deepen as Western sanctions

drive their economies together

CHINA Widely seen as a marriage of convenience, eco- months after Russia’s invasion of Ukraine this
nomic ties between Russia and China are rap- year. But since then, it has bounced back and is
idly deepening as the two countries are driven on course to end 2022 at around $190bn – just
together by pressure from the West. shy of the two presidents’ goal – with the total
As Nato foreign ministers gathered in Bucha- trade turnover reaching $154bn as of the end of
rest to show solidarity with Ukraine in its fight October.
against Russia, top politicians and business Oil remains the biggest item on the list as
leaders met for a Sino-Russian summit to pledge China became the largest consumer of Russian
deeper cooperation and celebrate the rapidly energy resources this year. Bilateral trade turno-
expanding business ties, led by trade in energy. ver has increased by almost two thirds in finan-
“China is becoming the largest consumer cial terms since the start of this year compared to
of Russian energy. This year, trade turnover in last year, Novak said.
the energy sector has grown by 64% compared “Amid the global energy crisis, the trade and
to last year, in physical terms, deliveries have economic relationship between our countries
grown by about 10%,” according to Russian Dep- represents stability and growth. China topped
uty Prime Minister Alexander Novak, speaking the list of Russia’s trade partners in 2021. In ten
at the fourth Russian-Chinese Energy Business months of this year trade turnover between Rus-
Forum held this week. sia and China reached $153.9bn, up by 33% in
China has been following a difficult path, sup- annual terms. With those rates maintained, trade
porting Russia’s clash with the West on one hand, turnover may reach a record $180bn-190bn by
but trying to avoid bringing down sanctions on the end of this year,” he said.
itself on the other as the EU and US account for Russian oil exports to China gained 9.5% y/y
over $1 trillion worth of its trade every year. by October to almost 72mn metric tonnes, CEO
And while Beijing has avoided supplying of the Russian oil major Rosneft Igor Sechin
Russia with military equipment and its banks added, making Russia the second-largest fuel
have shunned their Russian counterparts, that supplier to China, behind only the Kingdom of
has not stopped trade from booming, driven by Saudi Arabia (KSA) with 73.8mn tonnes.
a huge increase in oil imports, amongst other Gas exports are booming but remain a frac-
things. Russian President Vladimir Putin and tion of the gas that Russia sends to the EU. As
Chinese President Xi Jinping set themselves a part of the divorce from the EU, Russia hopes
goal of increasing their mutual trade turnover to to reorientate its gas exports eastward, but
$200bn by 2024 a few years ago, up from around currently has only one pipeline carrying gas to
$100bn before the war, and that goal is likely to Asia, the Eastern Siberia-Pacific Ocean (ESPO)
be achieved this year. pipeline. Nevertheless, piped gas to China has
increased by 60% this year, Novak said.
Trade Russian LNG exports to China have also been
Sanctions have cut Russia off from the EU which climbing. Russia’s deliveries of LNG may equal
was its main supplier of goods until the war those of piped gas in the near future, according
started, with machinery making up around half to Sechin, adding that pipeline gas supplies to
of all those imports for the last two decades. Now China would exceed 100mn cubic metres in the
sanctions, and more importantly self-sanctions, near future.
have seen European imports slow to a trickle, Russia is on course to export a total of 15 bcm
Russia has turned to China for help. of gas to China via the Power of Siberia 1 pipeline
Trade between Russia and China topped in 2022 – still only a tenth of what Russia nor-
$140bn in 2021 but fell hard during the first mally exports to Europe – but the total capacity

P4 www. NEWSBASE .com Week 48 29•November•2022