Page 57 - bne monthly magazine June 2024 Russian Despair Index

bne June 2024 Eastern Europe I 57
has helped Russia endure the extreme sanctions imposed on it by the West, rendering them largely ineffective. The two men have met more than 40 times since Xi came to power in 2012.
According to Chinese Foreign Ministry Spokesperson Wang Wenbin, Beijing attaches great significance to Putin and Xi’s diplomatic strategic leadership
in the formation of bilateral ties. "The two heads of state agreed to continue maintaining close ties so that Chinese- Russian relations could continue devel- oping successfully and stably," he said.
China has been in the spotlight recently, after the US accused Beijing of aiding Moscow to avoid sanctions and of being a major source of dual-use “high priority” exports of equipment and technology to Russia in a trade worth $300mn per month. The US has also targeted Chinese banks as part of its smart sanctions regime introduced in December, which has caused major Chinese and Turkish banks to cut ties with Russian banks.
Despite the growing economic ties, China’s exports to Russia were down 13% in April from a year earlier, the second month in a row of an annual decrease, according to Chinese customs data. Russian media reported that Chinese banks in late March began blocking payments from companies in Russia buying components for elec- tronic assembly.
The two leaders and their top officials could look for solutions such as desig- nating smaller banks with no exposure to the US financial system to handle transactions with Russia, according
to Alexander Gabuev, director of the Carnegie Russia Eurasia Centre.
US Secretary of State Antony Blinken was in China recently with a long shop- ping list of requests and overtly threat- ened China with a “suitable response” if China did not curb its aid to Russia. US Treasury Secretary Janet Yellen was also in China recently, making similar threats. Earlier this week US President Joe Biden ordered new tariffs of up to 100% on Chinese exports of electric
vehicles (EVs), batteries and other high tech items as trade relations between the two become increasingly tense.
During the press conference, Putin mentioned that he would brief Xi on the battlefield situation and that the conflict in Ukraine was a major topic of discussion during their meeting. He also criticised the military-political partnerships forming in the Asia- Pacific region, calling them "harmful."
While Russia is confronting the West over its “special military operation” in Ukraine, similar tensions are escalating in the South China Sea where China has become increasingly aggressive in its territorial claims.
Trade between China and Russia has surged to over $200bn a year as Rus- sia’s trade with Europe has tumbled
as a result of sanctions. China has become Russia’s more important export market for both energy and other raw
Views on issues of cooperation within various international organisations and structures, including the United Nations and the Shanghai Cooperation Organi- zation (SCO) are also on the agenda.
Putin and Xi are due to discuss issues of linking integration processes within the Eurasian Economic Union (EEU) and the One Belt, One Road Chinese initiative, which are at the core of the new Russian foreign policy concept as well as Bei- jing’s grand foreign policy strategy.
Another item that will be high on the business agenda is to sign off on the construction and operation of the poten- tial new Power of Siberia 2 gas pipeline link through Mongolia, which could
lift Russian state-owned gas champion Gazprom’s eastbound deliveries by 50bn cubic metres a year. Currently the Power of Siberia 1 is functioning, but construc- tion of its sister pipeline is waiting for
a comprehensive agreement between the two, especially on the price of the
“We are working to create a multipolar world," Putin said, emphasising that the two countries share similar views on global and regional issues”
materials. Russia and China have also abandoned the dollar and settled all their mutual trade in rubles and yuan respectively.
"We are working to create a multipolar world," Putin said, emphasising that the two countries share similar views on global and regional issues.
Other agenda items
Improving trade and economic coop- eration also feature prominently on the agenda as the two countries not only continue to tie their economies closer together, but also seek to form a global alliance of non-aligned countries in
the global south through the BRICS+ format and other similar organisations. Russia will host the annual BRICS+ summit this summer where more members are expected to join.
gas. While Putin and Xi may discuss the contract when they meet, the Russian side does not expect a final agreement this time around, according to a person familiar with the matter. The previous deal took a decade to agree.
Regional problems, such as the situation in and around Ukraine,
in the Middle East, in Central and Northeastern Asia, and in the Asia- Pacific region in general, are also on
the agenda. The Russian leader will hand over to his Chinese counterpart an invitation to visit the BRICS summit in Kazan in June, which will be their next meeting. Western powers are excluded from the BRICS meetings.
While in Beijing, Putin will also meet with Premier of the State Council of the People's Republic of China Li Qiang,
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