Russia fosters Chinese dependence

Source: Global Post

Moscow has been seeking to develop ties with Beijing by forging security groupings like the Shanghai Cooperation Organization, pushing for energy projects to integrate Russia with the East and encouraging investment to foster mutual dependence.

They spread along a 2,700-mile-long border with China. The two countries only ended their last border dispute in late 2008, with Russia giving up two islands, known as Tarabov and Bolshoi Ussuriysky in Russian, and as Yinlong and Heixiazi in Chinese. “Chinese economic expansion might influence Russian development, and Russia could lose leverage over the Asian part of the country,” said Lukyanov. “It’s not a military threat, it’s an economic or demographic one.”

Russia has increasingly been turning its energy attention eastward, not least because of the realization that, in the future, Europe and North America will likely not need all the oil, and particularly the gas, that Russia has to offer. Politicized energy spats have prompted Europe to devote more resources to seeking alternate sources, while new technology has vastly increased gas production in the U.S. in recent months.

Negotiations over gas have proven trickier than those over oil. Despite years of talks, Russia and China have failed to conclude a deal, as the two tough negotiators continue to haggle over price. Instead, China has turned to more malleable partners in Central Asia, opening last year its first ever overland gas pipeline, from Turkmenistan. Indeed, China’s influence can be felt throughout the region, as it pushes investment projects in infrastructure and natural resources. Some analysts fear that could be one flashpoint for Moscow and Beijing.

Read more: http://www.globalpost.com/dispatch/russia/100303/russia-china-relations-energy-security