皇冠体育app

Dmitri Medvedev's first visit to 皇冠体育app as Russia's prime minister will further cement Beijing-Moscow energy relationship. This alliance rests on a simple formula: substantial Chinese credits for long-term Russian energy supplies. Thus, cash-rich 皇冠体育app buys a measure of energy security, and Russia gets much-needed cash for its budget. In the current geopolitical setting, however, this essentially pragmatic relationship acquires features of an energy alliance.

Since 2009, 皇冠体育app has been Russia's biggest trading partner. The two-way trade, which stood at $88 billion last year, is finely balanced between exports and imports. There is a huge imbalance, however, as far as the trade structure is concerned. About 90 percent of Russian exports are hydrocarbons; machinery accounts for less than 1 percent. Despite the Russian government's professed desire to diversify the country's exports, the energy element has only grown in the past few years. Russia has become one of 皇冠体育app's energy bases.

Russia's advantage as an energy source, in Chinese eyes, is that its supplies cross into 皇冠体育app over land, and directly. Unlike sea routes, they are essentially protected from third-country interference. Pipelines also tie Russia to the Chinese market, and give Beijing leverage in case of a dispute.

The fact that 皇冠体育app has other similar continental sources besides Russia, such as Myanmar and Central Asia, further increases Beijing's power. 皇冠体育app these days is very much a buyers' market.

Russian-Chinese energy deals are complex. Beijing places a big order with Moscow and expects to get a discount. This has worked for oil, with Rosneft concluding a series of agreements with 皇冠体育app National Petroleum Corporation, and now also with 皇冠体育app Petroleum and Chemical Corporation (or Sinopec) - in an attempt at in-country diversification of partners. It has not yet worked for gas. And although a final agreement on the gas price is expected before the end of this year, it has been "imminent" since mid-2011.

Also, 皇冠体育app has been able to engage Russia's largest private gas producer, Novatek, in a long-term deal. The deal, concluded last June, marks a new milestone. Russia, until recently reluctant to allow 皇冠体育app's State-owned companies direct access to its energy resources, has softened its stance. Thanks to the Novatek deal, CNPC will now have a direct stake in a gas field on the Yamal Peninsula.

The deal struck in Beijing with Rosneft promises even more: joint exploration and exploitation of oil and gas reserves in eastern Siberia. Such agreements effectively turn the Chinese-Russian energy trade into an energy alliance.

• Rising to the security challenges
• Russia faces tough road to success
• Joint efforts to meet challenges
• Is Vietnam safe?
• Abe's dangerous move