Sunday, October 2, 2011

Eurasian News This Week

Russia-China - Moscow and Beijing have agreed on a price formula for Russian gas exports to China. A deal could be signed soon, but prices have still not been finally agreed. "When you have an agreed price formula, question remains about the starting point of this formula," - said the deputy chairman of "Gazprom" Alexander Medvedev at a press conference during the forum "Sakhalin Oil and Gas." He said that the talks were constructive and the partners listened to each other, but he did not mention when the contract will be signed.

According to a report produced by the Stockholm International Peace Research Institute (SIPRI), China's increasing global influence, its reduced dependence on the export of weapons from Russia and more alternative energy suppliers for China are making the country's strategic partnership with Russia problematic. While leaders of both countries play up the extent of their alliance and strategic ties, this partnership is unlikely to develop into anything more significant. In the coming years, while relations will remain close at the diplomatic level, the two cornerstones of the partnership over the past two decades -- military and energy cooperation -- are crumbling," the think-tank wrote. "As a result, Russia's significance to China will continue to diminish."

China-Russia-Belarus-Ukraine - Russia risks losing the markets of those countries which had always been considered as Russia's sphere of influence. China has an active economic expansion in Belarus and Ukraine. Beijing promises to Minsk and Kiev cheap credit and a great investment, writes the weekly "Kommersant-Vlast." Beijing has allocated Minsk soft loan of $ 1 billion and $ 11 million in grants. In addition, the Minsk and Beijing signed a document that lays the foundation for further Chinese investments into the Belarusian economy. However, Belarus is not the only country on the western borders of the CIS that China attaches great importance. In June, President Hu Jintao visited Ukraine and signed with President Viktor Yanukovych a declaration, according to which Kiev has officially become a strategic partner of Beijing. In the course of the visit contracts worth $2 billion were signed. According to Chinese diplomats, investments in Ukraine and Belarus are part of long-term strategy of China. Experts believe that there is a longer-term geopolitical calculations associated with the expansion of its influence in Eastern Europe in China's policy.

Russia-China-Iran - Unofficial sources have announced that Iran, Russia, and China are currently holding talks on a proposal to establish a joint missile defense shield as a counterweight to a NATO defense shield, according to a recent report. The report, which was published in the Iranian daily newspaper Kayhan, said that the sources cited two reasons why serious consultations have been held on the initiative. First, all three states have come to the conclusion that U.S. officials’ assertion that their concern over the alleged missile and nuclear capabilities of Iran and North Korea is the reason for the decision to establish a NATO missile defense shield is just a pretext and the true objective of the shield is to threaten Russia and China.
In addition, now that the proposal to establish an early warning radar system in southeast Turkey, which is one component of the NATO missile defense shield, appears to be a done deal, the U.S. is now planning to establish other components of the new system in South Korea and Taiwan, which clearly shows that Washington is using the alleged threat from Iran and North Korea as a pretext to target China and Russia.

China-Kazakhstan - Kazakhstan and China plan to double bilateral trade by 2015, said the chairman of the Standing Committee of the National People's Congress of China Wu Bangguo. "Currently, friendship and economic cooperation between our two countries have reached a strategic level. China is one of the main economic partners of Kazakhstan. Last year, our bilateral trade exceeded $ 20 billion. We plan to increase it up to $ 40 billion by 2015 " - Wu Bangguo said after a meeting with the chairman of the Kazakh Senate Kairat Mami.

Meanwhile, Chinese oil refineries will process Kazakh crude in a deal under negotiation that will lessen Astana’s reliance on Russia for refined oils, a top Kazakh minister revealed Monday. "In order to reduce our dependence on Russia, we are agreeing on tolling [third-party processing], including with Chinese refineries," the Reuters news agency reported Oil and Gas Minister Sauat Mynbayev as saying at a government meeting in the capital. Kazakhstan hopes to supply between 1 million and 1.5 million tons of oil to China’s Dushanzi refinery, located in the western Xinjiang region.

China-Turkmenistan - The President of Turkmenistan Gurbanguly Berdimuhamedov held talks with member of the State Council, Minister of Public Security of China Meng Jianzhu and Vice Minister of Foreign Affairs of China Cheng Guoping. "It was noted that Turkmenistan and China are in favor of building a business partnership, not only in the oil and gas sector, but also in transportation, chemical, construction areas, textile, food industry, etc."- said the press service Berdimuhamedov. eng Jianzhu said that the security situation in Central Asia is tense and invited both parties to strengthen the fight against "three evil forces" and to deepen bilateral and multilateral security cooperation. In turn, the head of Turkmenistan assured the Chinese side that Ashgabat is ready to strengthen cooperation with China in fighting "three evil forces" and work together to protect the security of both countries, as well as peace and stability in the region.

The Turkmenistan - China gas pipeline "plays an important role in ensuring the economic and energy security of both China and Turkmenistan," said to press Xiao Qinghua, China's ambassador in Ashgabat. The message is timed to celebrate on Saturday the 62th anniversary of the founding of the People's Republic of China. The Chinese diplomat said that "with the direct support and attention of President Hu Jintao and Turkmen President Gurbanguly Berdimuhamedov the oil and gas cooperation has been carried out successfully."

US-Uzbekistan - U.S. President Barack Obama spoke by telephone with his Uzbek counterpart Islam Karimov on stepping up Uzbek involvement in the U.S.’ military ‘Northern Distribution Network’ supply route into neighboring Afghanistan. The two leaders agreed on the need for a “secure and prosperous” Afghanistan. In the meantime, the U.S. Congress is discussing a new law that would authorize the Pentagon to give military aid to Uzbekistan. The new U.S. diplomatic strategy comes in the wake of a crisis in diplomatic relations between the United States and Pakistan that has raised worries over Washington’s major supply route to Afghanistan, which relies heavily on Pakistani support.

Kazakhstan-Afghanistan - Kazakhstani-Afghan deals signed September 27 reflect growing ties between the countries, Radio Free Europe/Radio Liberty (RFE/RL) reported September 28. Afghan President Hamid Karzai and Kazakhstani Emergency Situations Minister Vladimir Karpovich signed trade, education, mining and transport agreements. Kazakhstan plans soon to export 500,000 tonnes of wheat to Afghanistan, Afghan Commerce Minister Anwar Ahadi said. Workers soon will finish a Kazakhstan-Turkmenistan-Afghanistan railway, and commercial nonstop flights between Kazakhstan and Afghanistan are scheduled to start next year.


Articles referred to in this post:

"Россия и Китай согласовали формулу цены на газ" (Russia and China have agreed on a price formula for gas)

"Позиции России в энергетике КНР слабеют" (Russia's position in China's energy plan weakened)

"Белорусская площадка готова для китайской экспансии" (Belarusian market is ready for Chinese expansion)

"Китай отбивает у России самое дорогое" (China is winning the most valuable over from russia)

"Россия, Иран и Китай создают совместную ПРО" (Russia, Iran and China building a joint missile defense)

"Китай и Казахстан - добрые соседи и стратегические партнеры - генконсул КНР в Алматы" (China and Kazakhstan - good neighbors and strategic partners - Consul General of China in Almaty)

"Казахстан и Китай планируют к 2015 году удвоить двусторонний торговый оборот" (Kazakhstan and China plan to double bilateral trade by 2015)

"Kazakhstan looks to China for oil refining"

"Китай предложил Туркмении усилить борьбу с 'тремя силами зла'" (China suggested Turkmenistan to strengthen the fight against "three evil forces")

"Туркменский газ обеспечивает энергобезопасность Китая - посол КНР" (Turkmen gas ensures China's energy security - China's ambassador)

"США вошли в положение Узбекистана" (United States entered Uzbekistan)

"Казахи, афганцы сближаются" (Kazakhs, Afghans getting closer)

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