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Figure IV: China’s gas import sources<br />
MESUT HAKKI CASIN<br />
100<br />
a force of gravity. What about the<br />
US’ concerns According to Secretary<br />
of State John Kerry, “This isn’t<br />
new. This isn’t a sudden response<br />
to what’s been going on. And if the<br />
world benefits as a result of that,<br />
it’s fine. That’s not what’s at stake<br />
here.” 30 In this context we can say<br />
that Washington’s strategy against<br />
Moscow clearly involves strategies<br />
to create general market uncertainty<br />
that will destabilise Russia. When<br />
we evaluate the abovementioned<br />
developments, even the advantages<br />
for Russia, I think the real winner<br />
may be China, which has confirmed<br />
its new status as a global gas price<br />
setter. In addition, China is in a much<br />
stronger bargaining position against<br />
LNG suppliers in the United States,<br />
Canada, Australia, and the Middle<br />
East. Beijing took critical advantage<br />
of Russia’s weakening gas sales in<br />
Europe thanks to the ongoing crisis<br />
in the Ukraine. They demanded<br />
cheaper rates from Putin and got<br />
them. Thirdly, increased gas imports<br />
will also help Beijing in its declared<br />
“war on pollution” aimed at reducing<br />
its reliance on coal, which contributes<br />
to the harmful smog shrouding<br />
major cities. Another potential<br />
sticking point in talks was whether<br />
China would pay a lump sum up<br />
front to fund considerable infrastructure<br />
costs. In fact, according to<br />
Putin, China will provide $20 billion<br />
for gas development and infrastructure,<br />
but experts reported that the<br />
two sides were still in talks over any<br />
advance. This would be in tune with<br />
Beijing’s ambition to secure both resource<br />
flows and equity investment<br />
in neighbouring countries. Another<br />
words, for China, Russian pipeline<br />
gas has always been about guaranteed<br />
safe and secure supplies and<br />
achieving medium- and long-term<br />
socioeconomic development goals,<br />
especially for its industrial base located<br />
in northeast China, as part of<br />
its strategic course to transition to<br />
cleaner energy sources and go from<br />
coal to natural gas. 31<br />
CONCLUSION<br />
Russia-China cooperation has reached<br />
its highest level to date. China’s<br />
booming demand for gas could<br />
be a jump-start progress on the<br />
long-stalled pipeline project - the<br />
30.<br />
Matthew Lee: “Analysis: US plays down warming China-Russia ties”, https://news.yahoo.com/analysisus-plays-down-warming-china-russia-ties-042703015.html.<br />
31.<br />
Valdai, ibid.
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