Page 6 - AsianOil Week 12 2023

AsianOil OPINION AsianOil

Xi, Putin meeting: “Loud thunder

but few raindrops”

CHINA CHINESE President Xi Jinping took his leave of possible time. Orders have been given to ensure
Russian President Vladimir Putin from a two- the conditions are agreed,” he told reporters,
Putin was well day visit to Moscow with a smile on his face and state newswire Ria Novosti reports. “We hope
pleased with the visit the words: “Right now there are changes – the it’ll be this year.”
that showed China’s likes of which we haven’t seen for 100 years – and “Much more interesting is the list of joint
commitment to Russia we are the ones driving these changes together,” documents signed during the summit. You will
and gave him some Xi told Putin on the steps of Kremlin as he bid search in vain there for anything about Power
badly needed legitimacy him farewell. of Siberia 2, Putin's pet project that would see
for his military Xi is right, but those changes are mostly in a massive increase in pipeline gas exported to
campaign in Ukraine, China’s favour. Putin was well pleased with the China (50 bcm),” said Radchenko.
but beyond the visit that showed China’s commitment to Russia In the press conference after the meetings
platitudes he got little and gave him some badly needed legitimacy for were over, Putin spoke as if the deal was done
in the way of concrete his military campaign in Ukraine, but beyond and dusted: “"We have just discussed a good pro-
material support from the platitudes he got little in the way of concrete ject, this is a new gas pipeline Sila Sibiri 2 (Power
Xi. material support from Xi. of Siberia 2) running across Mongolia. Almost
First, Xi seems to have put a little more dis- all terms of this deal were agreed. This means 50
tance between himself and Putin, dropping the bcm of gas, stable and reliable shipments from
February formula of a "partner without limits" in Russia," Putin said.
a joint statement from Xi and Putin, released on Putin promised to deliver at least 98 bcm of
February 4. That phrase didn’t appear in the final gas a year to China by 2030, or about two thirds
joint statement from this trip. of the volumes Russia used to deliver to Europe.
On Ukraine, China did make concessions Yet work on the pipeline has yet to begin and
to the Kremlin. China laid out a 12-point peace remains at the blueprint stage.
plan on the anniversary of the start of the war on Radchenko points out that, combing through
February 24 that led with “respecting the sover- the Kremlin’s official list of agreements on joint
eignty of all countries”, but that formulation was Russo-Chinese projects released after the meet-
not in the final statement. ings, there is no mention of the deal at all, but the
“Ukraine was a persistent theme. Putin closer co-operation in the Far East, organising
expressed appreciation for China's position exhibitions and soybean production are there.
paper, and the joint statement referenced the Indeed, there are no details on any of the $165bn
issue. Compared to the position paper, it did worth of deals that Putin said had been signed
not refer to Ukraine's sovereignty and territorial during Xi’s trip.
integrity, undoubtedly on Russia's insistence,” “Putin announced several times during the
Professor Sergey Radchenko at the Kissinger visit that the project was nearly, oh so nearly,
Centre said in a tweet and quoted the Chinese ready. But nothing was signed... I guess the Chi-
expression “Loud thunder but few raindrops” to nese are still haggling over the price, which they
sum up the concrete results of the meeting. are right to do because Russia stupidly lost all
Another mismatch between the two posi- leverage by cutting itself off from Europe,” said
tions was on the progress in building the mooted Radchenko.
Power of Siberia 2 gas pipeline. This new 50bn The negotiations over POS2 are likely to drag
cubic metre gas route is designed to increase the on for years. Xi was in Moscow on his first for-
volume of gas Russian can sell to China and is eign trip after re-election to a third term as pres-
a complement to the existing Power of Siberia ident. Following his second re-election a decade
1 pipeline that went online a few years ago and ago he also chose to visit Moscow and at that
already carries 15 bcm a year. The new pipeline is time negotiations for the POS1 deal began, but
a key part of Russia’s plan to re-orientate Russia’s those also took years to complete as the two sides
gas business from Europe to Asia. haggled over the offtake price. This time round,
Russia’s top energy official, Alexander Novak, after Russia has entirely lost its biggest customer,
said the Kremlin hoped a deal with China on Europe, the Russian negotiating position is sig-
POS2 could be signed this year. “The companies nificantly worse.
have been given orders to work out the details of “Xi didn't even give a nod to minimal pro-
the project and get to signing it in the shortest gress on the Power of Siberia 2 gas pipeline, a

P6 www. NEWSBASE .com Week 12 24•March•2023