Pipelines and Dragons and Bears
Russia Turning East for a New Gas Customer
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  • Andrew Allison

    “Back in 2006, Gazprom signed a Memorandum of Understanding to transport gas by pipeline to energy-hungry China, but disputes over price have prevented the discussion from advancing much further”

    “The only issue remaining is … the price, . . .”


  • El Gringo

    “For its part, China wants another steady supply of natural gas”

    And so it turns to Russia, a country that has proven more than willing to shut off said gas flows for political leverage?

  • Yes, the only issue remaining is the price, but it’s the pivotal issue. I would imagine that Russia’s Crimean adventure has boosted China’s bargaining power on this.

    Actually, there are some other issues in the background, such as who is going to build the pipeline and at what cost. China might suggest, “We build the pipeline but you give us a price discount.”

    Russia’s self-described patriots have whined for ages about the country being a “resource appendage” of the West. Being the same for China is OK with them apparently.

  • gabrielsyme

    Earlier this week it threatened to bust U.S.-led sanctions against Iran; a gas deal with China would be more of the same.

    Uh, no. A gas deal would be a normal and untroubling international business deal. It might be argued that we ought to have sanctions against China, whose human rights record is much, much worse than Russia’s, but we and the entirety of the West are eager to trade with them.

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