Siberian Geography and Chinese and Russian Strategic Goals

                                                                                              

West is the biggest importer of Russian LNG (Liquefied Natural Gas) but after Crimean annexation with Russia caused a trace of bitterness in the Russian European relationship. Russia changed the pivot using Siberian geography. They called this project “The Power of Siberia” by building an enormous pipeline “From Siberia to China” for feeding the Chinese snowballing energy appetite. The initiation was started by President Vladimir Putin to counter the dependence on the European market. To nourish the insatiable energy appetite, it is another bloodline for Chinese domestic production. The second December 2019 was the most notable day for the strategic partnership between Russia and China. The $55 billion is the most dazzling energy undertaking after the dissolution of the Soviet Union. It’s just a slice of cake of a $400 billion deal with China to supply 38 billion cubic meters of LNG for 30 years. Because of Western sanctions, the Kremlin turned its face away from Europe toward China, a 180-degree turn in policies aligned with strategic goals. The Kremlin put an 1800-mile pipeline as a hedge to the shrinking European market. The solution for souring diplomatic relations with the West for Russian’s oil and gas industry in the long run.

Russian possession of natural gas resources is 20% of entire world gas resources and 17.3% productions and world largest exporter of the world in terms of natural gas resources. West imports 21% of natural gas from Russia. In 2014, the annexation of Crimea, intensity, and bitterness after the cold war in Russian and European relations caused an intensity of scrutiny. For Europe, it closes a fair choice and the nearest one. Russia wants diversification and exploration of more energy-hungry markets. Russia notified the world’s strategic movement more towards Geo-economics plus Geopolitics. The Chinese appetizer of natural gas increased 33% in the previous three years and it rapidly increases reaching 40% by 2024. The worth of the agreement named “The Power of Siberia” is much as economic for Russia but much more strategic for China. The biggest deal in Russian history $400 billion gas supply contract. Strategically USA and EU troubled their relations with Russian Federation, and the gap is filled by China and Asia. This is a setback for Europe but also two European allies are caught in the strategic cat-and-mouse game. These implications applied to Japan and Australia. The first impact bearer is the international energy markets. The cheaper Russian gas, cheaper than other contenders. Australia lost its business as a traditional supplier to china. Japan benefits from long drives. Many of Japan’s gas deals were signed before the price fell 43% in 2014, and pandemics play a role of insult to injury result in the slow pace of the world economy. These dynamics make weak spots for such efforts as Japan and Australia joined such a deal.

The strategic impact is the second angle. Bear is just out of sleep and the Dragón is hungry for power, whereas the Eagle is weak but still powerful. To counter the American influence, Russia and China used geography as the countermeasure.       

On some matters, the USA shows its supremacy over Russia and China. But President Xi defined the Power of Siberia as a new beginning of a new age called the “Asian Age”. The views shared by President Putin “take Russo-Chinese strategic cooperation in energy to a qualitative level”. 

What are Chinese Needs?

The biggest energy consumer China's hunger for energy increased day by day. Russian gas is a supplement and could be cheaper than most suppliers in the world. They are also converting from contained gas to a pipeline “Siberia 2.0”. This supply is consumed for the industrial areas on China’s east coast. With Russian gas, China also acquired from Central Asia, Turkmenistan, Uzbekistan, and Kazakhstan are new ways from new energy pipeline would arrive.    

 The Importance of Siberia for China:

Siberia is the Russian hegemony over its dependence on European markets. Russia already took the plunge against European sanctions. Most of the Russian supplies of natural gas are towards Europe, through Ukraine. Some of them supplied as LNG from Yamal peninsula to northern Siberia to Sakhalin Island neighboring Japan. Ukraine and Russia have had a disagreement over transit fees for years, so Russia turns off supplies in the 2014 winters. Due to the Crimea dispute, the EU and USA responded with sanctions in 2014. While vast gas reserves of Russia are near China than Europe.

This energy deal is one aspect of this strategic partnership. Their mutual trade reached the volume of $200 billion per annum soon. The second and important point is a military-strategic partnership which will have a bigger role in the coming days. These exercises triggered alarm in Washington, Tokyo, and Soul altogether. The Russo-Japanese territorial dispute over Hokkaido Islands during WW2. The Soviet Union seized them from Japan. This occupation and strategic partnership with Beijing, Japan, also has a strategic view of the situation. Therefore, Japan invested in the Russian energy sector, so Beijing solely does not take advantage of the Russian energy sector. This step also influenced Moscow’s strategic thinking. The recent actions by Russia and China showed how they are deeply involved in creating the future strategic picture of the region. The response from Japan and the USA of Russian and Chinese exercises is clear that you are not the sole influencers of the region.

Putin and Xi’s strategic thinking has more convergence than the Russian state, considering it as the revisionist state eager to recalibrate the globe. This is the cornerstone of the Chinese, Russian partnership fuelled by energy resources.