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In the face of major economic sanctions from many countries around the world, especially the United States and other Western nations, Russia has been actively looking to avoid economic isolation. As a result of this, it has turned to many large nations in the East to set up economic agreements. One country that is willing to open its doors is China. After over ten years of talks on the subject, Russia and China are finally coming close to signing what has been called a "Holy Grail" for Russia and especially Moscow; a deal where Russia will send natural gas to China. #
Both countries would have much to gain from this deal. Since Russia's main existing exporting partners for oil and gas are European countries, a deal with China would allow Russia to expand its export of these commodities in Asian markets. China's desire for Russia's natural gas comes from its interest in getting involved in alternative energy projects in Crimea, which would help to develop the peninsula. The two countries plan on working together in producing oil, coal, and other energy sources. The deal also includes the building of a pipeline between the two countries, which would send over 38 billion cubic meters of gas per year.
The natural gas agreement between the two nations could also pave the way for Russian trade with other Asian countries. The country already has existing deals with Japan and is currently working on a partnership with oil and gas, as Japan is the largest consumer of natural gas in the world. While Japan would benefit greatly from this trade, it is a tough decision to make as it has been put under much pressure to also place sanctions on Russia. Even if Japan refuses trade, Russia also has the option of India, who still views the country in a favorable light. The overall goal for Russia is to double its exports of oil and gas to all of Asia over the next 20 years.
The deal, while not officially signed yet, is expected to be approved very soon. Putin is expected to fly out to Beijing next month in order to sign the deal personally, which will officially come into effect in the winter. Deadlocks such as disputes over pricing are being negotiated efficiently and are on their way to being resolved. Do you think that Russia and China will be able to keep up this mutually beneficial trade? Will Russia be able to efficiently avoid the effect of Western sanctions? Tell us what you think by leaving a comment below.
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