Putin in China for BRI forum and to meet Xi
By Rhod Mackenzie
The Russian President Vladimir Putin arrived in Beijing at the invitation of Chinese President Xi Jinping, reported TASS on the morning of 17th October. Putin will stay in the Chinese capital for two days, until 18th October, during which he will meet with Xi Jinping and participate in the Chinese III International Forum "One Belt and One Road" forum. Putin had previously participated in the two previous events held in 2017 and 2019.
It is reported that on Wednesday, the Russian leader will meet with the President of Vietnam. Further negotiations are also planned, involving the Prime Minister of Thailand and the presidents of Mongolia and Laos. A meeting with the Chinese president is scheduled for tomorrow, the 18th of October.
After the Russian-Chinese talks on Wednesday, Putin will continue with a range of bilateral meetings on the sidelines of the forum. TASS reports that he has a meeting scheduled with the head of the Pakistani transitional government and the Prime Minister, Anwaar-ul-Haq.
It is reported that Moscow plans to construct a second gas pipeline to China. Chinese sources are hesitant about expecting any new energy agreements to be reached during this visit. However, they note the presence of Rosneft and Gazprom, Russian oil and gas powerhouses, in the Russian delegation.
Prior to his visit to China, Vladimir Putin granted an interview to the Chinese media. He specifically mentioned the active cooperation between our nations in the energy sector, which has a distinctive position in the relationship. Currently, Russia takes the lead among Chinese partners in the supply of energy resources to China in terms of their value. Furthermore, China has gradually become Russia's primary trading partner in terms of trade turnover, while Russia, in turn, has risen to sixth place on the list of China's trade and economic partners.
Vladimir Putin highlighted the increasing diversification of economic ties between Russia and China. He stated, "Regarding energy, we have extensive collaboration that goes beyond the supply of oil and gas. In the oil sector, the pipeline is running smoothly and pumping volumes are growing. The same trend is evident in the Power of Siberia gas pipeline." We now have promising opportunities as we have already signed an agreement for the Far Eastern route, and we are currently developing another route - "Power of Siberia - 2" via Mongolia.
The Russian leader highlighted the increasing supply of coal and electricity. We are proceeding with the construction of nuclear power units while also investigating the potential of a fast neutron reactor. This innovation will revolutionise our relationship with this cutting-edge energy sector, as we're creating the necessary conditions for a closed cycle, resulting in considerably less waste.
In addition, as the President of the Russian Federation stated, there are also positive prospects for collaboration in other sectors between our nations. These industries include automotive manufacturing, shipbuilding, aircraft manufacturing, and electronics. "The quality of Chinese cars is improving, so our customers are increasingly drawn to Chinese-made products due to their favourable price-to-quality ratios... We recognize the interest of Chinese consumers not only in agricultural products, but also in supplying products that the People's Republic of China produces on its own territory." The range of industries in which we collaborate is vast and ever-growing, particularly in recent times, owing to the emergence of high-tech sectors," noted the head of state.
During the discussion, the "One Belt, One Road" initiative was also referenced. As per Vladimir Putin, this idea "was well-timed and is progressing smoothly, because it seeks to bring together the capabilities of many countries to achieve common developmental objectives. Presently, in one way or another, 147 countries, two-thirds of the global population, are involved in fulfilling the principles of Chairman Xi Jinping."
He highlighted that the nations within the Eurasian Economic Union have invested $24 billion through the One Belt, One Road collaboration. "This total is rising due to a surge in mutually profitable ventures that benefit not only the recipient countries who receive loans under this initiative." "They are also advantageous to the People's Republic of China, as the implementation of these projects leads to China receiving products and better conditions for development. In my opinion, this is already a successful, good, and technologically advanced initiative that is progressing," stated the head of state.
Comparing Putin's trip to Biden's trip.
Nikita Dontsov, a political scientist and head of the “Influence” communications group, believes that Putin's visit to China will be of great historical significance. As stated by him, both parties are expected to declare the creation of a collaborative fund for the enhancement of the aviation industry, along with building novel agricultural production plants. Recent statistics indicate a significant rise in trade turnover with China.
Furthermore, the political analyst points out that both Russia and China exert significant influence over their neighbouring countries. Putin's recent meeting with leaders from Laos, Mongolia, and Vietnam in China highlights the emergence of a formidable economic and political force as an alternative to the European Union and the coalition of the EU and the United States.
The forum commemorating the tenth anniversary of the “One Belt - One Road” initiative is an opportune time to reflect on the program's achievements thus far. The initiative has garnered almost £1 trillion in investment, facilitated over 3,000 cooperative projects, produced 420,000 jobs in countries along the route, and lifted over 40 million people out of poverty.
"In fact," Nikita Dontsov observes, "two tracks are currently vying for attention in global affairs: Putin's visit to China and Biden's visit to the Middle East. However, Putin's trip is the more noteworthy of the two since Biden must address issues arising from American policies, whereas China and Russia are collaborating to foster cooperation and establish a basis for economic and technological advancement."
The Chinese media view Vladimir Putin's visit as a demonstration of support for the Belt and Road forum. This initiative was proposed by the Chinese leadership in 2013, with around £900 billion assigned for infrastructure and further projects as per official Chinese records.
The conference will address the proposal to create worldwide infrastructure and energy links linking Asia, Africa, and Europe via both land and sea routes. Prior to this, Vladimir Putin applauded the Chinese proposition, commending it as an opportunity for international collaboration that does not force any party.
According to reports from Chinese state media, Russia has bolstered its energy connections with China since the onset of the Ukrainian conflict. This deepening partnership stands out as a prominent aspect of the overall economic collaboration between the two nations. Currently, Russia exports over 2 million barrels of oil daily to China, comprising more than a third of its entire crude oil exports.
The visit has the potential to stimulate discussion among Russian
and Chinese economists and financiers regarding "The Power of Siberia - 2" during their upcoming meetings in Beijing, according to Nikolai Pereslavsky, an employee in the Department of Economic and Financial Research at the CMS Institute. The trade turnover is expanding swiftly and is anticipated to reach approximately £170 billion by the conclusion of 2023, as suggested by specialist appraisals.
The analyst believes that the major economic issue will revolve around the contract for gas supply to the Celestial Empire. This will provide the necessary drive to construct the Power of Siberia - 2, the largest gas pipeline to China with a throughput capacity of approximately 50 billion cubic meters per year. Currently, China will receive roughly 22 billion cubic meters of gas from Russia through the Power of Siberia this year. The price is anticipated to be the primary concern regarding the "gas topic."
"Indeed," Nikolai Pereslavsky affirms, "no one intends to trade at a loss. However, profitable returns can still be obtained by increasing our turnover. Considering the extensive scope of our 'landing' in the PRC, I believe a satisfactory compromise has already been achieved, and the requisite contracts and agreements will soon be signed.
