Kremlin leader Vladimir Putin will travel to Beijing on Tuesday for talks with Chinese leader Xi Jinping as part of his first foreign visit this year, amid reports that the war with Iran is giving Russia an opportunity to deepen energy ties with China, Bloomberg reports, according to UNN.
Details
Russia hopes that the turmoil in energy markets caused by the conflict in the Middle East will make China more flexible in negotiations over a gas price contract for the planned Power of Siberia 2 pipeline project, according to people close to the government. Chinese officials have expressed interest in accelerating the talks, although no significant progress has been made yet, one Russian official said.
The pipeline project "is on the agenda, and we intend to discuss it seriously," Kremlin foreign policy aide Yuri Ushakov told reporters on Monday. "I believe this topic will be discussed in great detail between the leaders," he said.
Nevertheless, progress on any deal depends on Xi Jinping, and so far there are no signs that Russia can easily reach an agreement, the publication notes.
Putin and Xi Jinping are scheduled to hold talks on Wednesday and will have tea together in the evening to continue discussions, Ushakov said. The Russian delegation includes five deputy prime ministers, eight ministers, and the head of the Central Bank of the Russian Federation, Elvira Nabiullina, as well as heads of state corporations and large enterprises, he said.
Given the growing tension in Russia's economy, it is heavily dependent on trade with China to ease the impact of Western sanctions over the full-scale invasion of Ukraine, which is now in its fifth year. US President Donald Trump's war with Iran could give Moscow an opportunity to rebalance the relationship as Beijing seeks greater energy security amid disruptions caused by the closure of the Strait of Hormuz, the publication notes.
The conflict in the Middle East "strengthens Russian-Chinese relations, enhancing Russia's role as a key supplier of raw materials to China," said Vasily Kashin, a China expert at the Higher School of Economics in Moscow, adding: "Putin's upcoming visit is expected to reflect this new geopolitical reality, with China's growing interest in cooperation in Russian logistics and energy."
Gazprom has made a very competitive offer on the gas price for the Power of Siberia 2 pipeline, which will stretch to China from Siberia through Mongolia, although Chinese counterparts have shown no desire to move the project forward, according to a person close to the Russian state energy giant. The goal is still to agree on a gas price by September, the source said.
China said in March, after the start of the war with Iran, that it aims to make progress on the construction of the Russian gas pipeline in its five-year plan. In late April, Gazprom CEO Alexey Miller and China National Petroleum Corporation Chairman Dai Houliang met in Beijing and discussed the "development of strategic partnership."
On May 9, Putin stated that "practically all key issues" regarding cooperation in the gas and oil sectors had been agreed upon with China. "If we manage to complete them and bring the process to a final point during the visit, I will be very happy," he said.
While transport corridors through Russia have also long been on the agenda of bilateral talks, Moscow now sees greater interest from Chinese officials in expanding transit routes by land and via the Northern Sea Route through the Arctic, according to people familiar with the discussions.
"The war in Iran shows that the security of traditional routes and strategic chokepoints can no longer be taken for granted," said Wang Yiwei, a former Chinese diplomat and director of the Institute of International Affairs at Renmin University. "This forces China to develop alternative routes and more actively hedge risks."
Formally timed to coincide with the 25th anniversary of the Treaty of Friendship and Cooperation between Russia and China, Putin's visit follows Xi's summit with Trump last week and gives the Kremlin leader an opportunity to learn details of those discussions, according to the Kremlin.
For Xi, this is the second time this year that he has held back-to-back diplomatic talks with Trump and Putin. He spoke separately with the US President and Putin for several hours during phone calls in early February.
Xi Jinping told Trump that Putin might "regret" the invasion of Ukraine - FT19.05.26, 08:19
As the publication points out, the US has at times tried to steer Russia away from its partnership with China as part of a broader geopolitical strategy related to the war in Ukraine and potential confrontation with Beijing over Taiwan. But Putin has little incentive to turn away from Xi Jinping, even as some Kremlin officials are increasingly concerned about Russia's economic and diplomatic dependence on China, the publication notes.
According to European officials, Russia currently imports more than 90% of its sanctioned technologies through China, up from approximately 80% last year.
"While Beijing views Moscow as a useful partner in weakening US dominance and promoting a so-called multipolar world order, China seems determined not to identify too closely with the risks of Putin's war in Ukraine, especially given that it is trying to present itself globally as a force for stability," the publication notes.
This balancing act helps explain the apparent contradictions in China's position. Beijing has refused to condemn Russia's invasion, although Chinese officials continue to invoke sovereignty, territorial integrity, and the authority of the United Nations—language that sits uncomfortably alongside Moscow's territorial claims in Ukraine, the publication writes.
"China wants to avoid responsibility for using its ties with Moscow to end the war. Nevertheless, Beijing seeks to maintain its relationship with Russia," the publication notes.
An editorial published Monday in the People’s Daily, the flagship newspaper of the Communist Party of China, stated that international turbulence means both sides must "strengthen strategic coordination and comprehensive cooperation." It highlights space exploration, energy, science and technology, agriculture, artificial intelligence, green initiatives, and biotechnology as areas of potential cooperation.
"China's interest in Russia is based on strategic advantage, as Moscow offers energy security, access to critical resources, and access to the Arctic," said Vita Spivak, a consultant at Gatehouse, a British geostrategy consultancy. "But, of course, Russia needs China more than the other way around."
USA, China, and Russia are interested in a divided Europe - Kallas17.05.26, 17:29