China and Russia Strengthen Energy and Finance Ties Amid Western Sanctions
In a show of solidarity against Western sanctions, China and Russia have pledged to deepen their cooperation in the energy and finance sectors. During a meeting in Beijing, Chinese President Xi Jinping and Russian President Vladimir Putin discussed plans to enhance their partnership in various fields, including oil, natural gas, coal, and renewable energy.
The joint communique released after the meeting highlighted the importance of market principles in guiding their collaboration. Both leaders emphasized the need to ensure the stable operation of cross-border infrastructure for the seamless transport of energy resources.
The ongoing trade relationship between China and Russia has been crucial for both countries, with record bilateral trade reaching US$240 billion last year. This partnership has provided a lifeline for Russia, which has been facing sanctions from Western countries since its invasion of Ukraine in 2022.
Maxim Kuznetsov, chairman of the Russian-Asian Business Council, acknowledged the challenges in finalizing key energy projects, such as the gas pipeline Power of Siberia 2. Despite the complexities involved, both countries remain committed to expanding their cooperation in the energy sector.
To mitigate the impact of Western sanctions, Xi and Putin have agreed to increase the use of their currencies in bilateral trade and financial activities. They also plan to enhance financial infrastructure to facilitate smoother settlement channels.
In addition to energy cooperation, China and Russia are exploring opportunities in various industries, including civil aviation, shipbuilding, electronics, and artificial intelligence. The two countries are also looking into opening new shipping routes across the Arctic region.
The strengthening of ties between China and Russia underscores their mutual dependence and commitment to deepening their partnership in the face of external pressures.