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China, Russia aim to double Trade Volume, Intensify Cooperation

China and Russia Tuesday agreed to further enhance cooperation in trade, energy and other areas, setting a goal to double bilateral trade volume.

The agreement came as Chinese Premier Li Keqiang visited Russia and co-chaired the 24th regular meeting between Chinese and Russian Heads of Government with Russian Prime Minister Dmitry Medvedev.

Li said China stands ready to better align the Belt & Road Initiative with the Eurasian Economic Union, maintain the growing momentum of China-Russia trade and improve the level of trade and investment facilitation.

He encouraged both sides to strive for the goal to double bilateral trade volume.

China has been Russia’s top trading partner for nine years running. Last year, two-way trade surged by 27.1 percent, breaking the 100 billion U.S. Dollar mark for the first time.

Li called on China and Russia to jointly implement the major energy projects, further open up markets to each other and explore the cooperation mode of oil refining and chemical engineering.

He also called for enhanced cooperation in science and innovation, finance, agriculture, sub-national and people-to-people exchanges.

For his part, Medvedev said Russia is willing to further expand trade with China and will work hard to realise the goal of doubling the trade volume.

Besides bilateral cooperation in traditional areas such as energy, Russia will scale up cooperation on hi-tech and promote cooperation in areas including agriculture, industry, aviation and space, nuclear energy to yield more fruitful results, said Medvedev.

Russia attaches great importance to the sub-national cooperation and people-to-people exchanges, he said, adding that the country hopes to conduct more exchanges between young people, universities and local governments.

Li’s visit was made on the occasion of the 70th anniversary of China-Russia diplomatic relations. During Chinese President Xi Jinping’s state visit to Russia in June this year, China-Russia relationship was elevated to the comprehensive strategic partnership of coordination for a new era.

As each other’s biggest neighbours and permanent members of the United Nations Security Council, China and Russia boast healthy and stable ties, said Li.

Against the backdrop of growing uncertain and unstable factors in the international situation, it not only benefits both countries but also contributes to regional and world stability and prosperity that China and Russia enhance strategic coordination, reinforce political mutual trust, deepen pragmatic cooperation and intensify people-to-people and cultural exchanges, he said.

Medvedev said this year is of significance to Russia-China relations as it marks the 70th anniversary of the founding of the People’s Republic of China as well as the 70th anniversary of diplomatic ties between the two countries.

Noting that bilateral ties are now at their best in history, Medvedev said it is Russia’s priority of foreign policy to develop ties with China as it accords with Russia’s own needs.

He said both countries have been coordinating on the international stage and advocating that multilateral international rules should be followed while unilateral sanctions should be opposed.

During the meeting, Li and Medvedev were briefed by Vice Premiers of China Sun Chunlan and Hu Chunhua, Russian First Deputy Prime Minister Anton Siluanov and Deputy Prime Ministers of Russia Dmitry Kozak, Tatyana Golikova and Maxim Akimov.

The two heads of government also had in-depth exchanges of views on international and regional issues of common concern.

After the meeting, Li and Medvedev signed a joint communique of the 24th regular meeting and witnessed the signing of a series of deals in areas including investment, economy and trade, agriculture, nuclear energy, aviation, science and technology, and digital economy.

Premier Li arrived in St. Petersburg Monday afternoon for a three day official visit.

Source: Belt and Road News

Dated on: 20/9/2019

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Russian National Development Bank says Ready to Finance Joint Projects with China

Russian national development bank VEB is interested in investing jointly with Chinese partners in projects that synergize the Eurasian Economic Union and the China-proposed Belt & Road Initiative, the bank’s head has said.

“VEB has developed strategic relations with Chinese partner institutions,” VEB Chairman Igor Shuvalov told in a recent interview.

He said that Russia plays a special role in Eurasian integration given its geographical location and vast territory, and the country could serve as a convenient artery for freight transport between Asia and Europe.

The Russian and Chinese governments have compiled a list of more than 70 investment projects that are of priority importance for both countries and attractive to investors, while VEB and the China Development Bank have been assigned the role to evaluate them, Shuvalov said.

“In many of them we intend to take an active part and VEB is considering 13 projects on the list,” he said.

The key Russian bank is drafting deals on the development of transport infrastructure along the Arctic shipping route, and it involves the construction of ice-class tankers and gas carrier ships at Russia’s Zvezda shipyard, Shuvalov said.

He hopes that Chinese investment will strengthen the competencies of the Russian shipbuilding industry and facilitate the efficient and quick transport of Russian liquefied natural gas to China and other Asian countries.

Senior Executives from VEB visited China last month and presented major projects in Russia to over 30 large Chinese construction, engineering and logistics companies

Shuvalov said that VEB plans to hold such roadshows on a regular basis to attract more Chinese investors.

VEB will assume the chairmanship of the inter-bank association under the Shanghai Cooperation Organization from October, Shuvalov said.

“I am sure that our chairmanship will be an additional opportunity for promoting industrial and infrastructure projects in the space of Greater Eurasia,” he said.0

Source: Belt and Road News

Dated on: 19/9/2019

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What you need to know to understand Belt and Road

Source: World Economic Forum

Writer: Bruno Maçães

There are two things everyone needs to know about the Belt and Road. First, as officials in Beijing will tell you, this grand project is measured in decades, with its conclusion planned for 2049, the centenary of the founding of the People’s Republic of China. Second, the initiative is both global and revolutionary. Its aim is to create a new order in world politics and the world economy.

Past equivalents to the Belt and Road would have to be just as shapeless and ambitious. Perhaps concepts such as “the West” come the closest — even in the manner that a metaphor came to acquire epochal significance. If the initiative succeeds, it is very likely that we shall use the name to refer to the new arrangements, much as we use “West” as a shorthand for the existing order.

What will the world look like after the Belt and Road? In the first Belt and Road summit in 2017 Xi Jinping hailed it as the “project of the century.” If all goes according to plan, the Belt and Road will change the shape of the world economy and world politics, returning us to a time when China occupied the center of global networks.

There will be new infrastructure, of course, and that will be an obvious and easy metric of success. In twenty or thirty years some of the new Belt and Road projects will likely stand as the highest example of what human ingenuity can achieve in its drive to master natural forces. A bridge crossing the Caspian Sea may make road transport between Europe and China fast and easy, changing old mental maps separating continents. The Kra Isthmus Canal in Thailand will do the same for the Indian and Pacific Oceans.

But infrastructure is ultimately a means. The geographic space being transformed must be connected before it can start to grow areas of economic activity; industrial parks along infrastructure routes are slowly integrated to establish regional value chains and eventually support China’s rise to a technological superpower, leading the transformations of the future.

Artificial intelligence, robotics, genetic engineering and space exploration. As it expands, the Belt and Road is bound to become increasingly futuristic. Self-driving vehicles on land, sea and air and trillions of connected devices worldwide will be empowered by a Belt, Road and Space fleet of China-centered satellites. Chinese companies are already planning to engage in deep-space economic activity, like building orbit solar power plants, and mining asteroids and the moon. One or more Sputnik moments – when Chinese technology leaps far ahead of what the West can do – will offer the final and most meaningful metric of success for the Belt and Road.

The Belt and Road will never become universal—just as the West never became universal—but in some areas of the world it will rule unimpeded and different shades of influence will be felt everywhere.

The problem is to determine the core of the new Chinese world picture and identify the main traits which it will come to impress upon the whole. Many of those traits are already visible in what is but the construction stage of the Belt and Road.

Virtues are regularly invoked. Countries have relations of dependence, generosity, gratitude, respect and retribution. Relations between countries are much more diverse and complex than in the more formal Western-led order. Ritual is important, and so is history. Nations are better seen as intersecting stories and power the ability to determine where the story goes next.

Even in its formative stage the Belt and Road is an exercise in the opacity of power. There is an exoteric doctrine of the initiative and then an esoteric practice where deals are agreed upon, often with no written evidence, and where hierarchy resembles that of security-clearance levels of access. The Belt and Road is like holy writ—never revealed completely and all at once, but only bit by bit and over many decades.

Rapid change, old-fashioned morality, and secret communication. This will be a world of soothsayers, saints, and spooks.

The Belt and Road may well never realize its goals. It may be abandoned as it runs into problems and the goals it sets out to achieve recede further into the distance. But success and failure are to be measured in terms of these goals, so we must start from them.

The new world the initiative will try to create is not one where one piece on the chessboard will be replaced, not even one where the pieces will have been reorganized. It will be a world built anew by very different people and according to very different ideas.

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Pakistan, Russia set to sign $10b offshore pipeline deal next week

ISLAMABAD: In a major breakthrough, Pakistan and Russia are poised to sign a $10-billion offshore pipeline deal, a project planned by the latter to capture the energy market of Pakistan.

Sources told The Express Tribune that the cabinet had approved the signing of the gas pipeline laying deal and Pakistan ambassador to Russia had been authorized to ink a memorandum of understanding with Moscow.

The envoy is likely to ink the understanding in Moscow on Monday. Final cost of the project will be assessed following a feasibility study to be conducted by Russian energy giant Gazprom.

Russia has nominated Public Joint Stock Company Gazprom for implementation of the project. Pakistan’s cabinet has also permitted the company to conduct the feasibility study at its own cost and risk.

One-week deadline: Sindh warns cutting off gas supply to country

Inter State Gas Systems (ISGS) – a state-owned company of Pakistan established to handle gas import projects and is already working on gas pipeline schemes like Tapi, has been nominated by Pakistan to execute the offshore pipeline project along with Gazprom.

ISGS is also working on the $10-billion Turkmenistan, Afghanistan, Pakistan and India (Tapi) gas pipeline to connect South and Central Asia and construction work on the scheme in Pakistan will start in March next year.

These projects are called a game changer for Pakistan as they will not only lead to regional connectivity, but will also meet growing energy needs of the country.

Amid a long-running tussle with Europe and the United States over the annexation of Ukrainian region of Crimea, Russia is looking for alternative markets and wants to capitalise on the growing energy demand in South Asia.

Russia, which controls and manages huge gas reserves in energy-rich Iran, plans to export gas by laying an offshore pipeline through Gwadar Port to Pakistan and India, which are seen as alternative markets because Moscow fears it may lose energy consumers in Europe over the Crimea stand-off.

Russia has been a big gas exporter to European Union (EU) countries and Turkey since long and despite US anger the European bloc has continued to make imports to meet its energy needs.

Moscow receives gas from Turkmenistan and then exports it to EU states. Later, it has got gas deposits in Iran as well and is looking to gain a foothold in markets of Pakistan and India.

OGDC finds new deposits of oil, gas in Sindh

Pakistan has been experiencing gas shortages, particularly in winter, for the past many years as domestic production has stood static with new additions being offset by depleting old deposits.

In a bid to tackle the crisis, the previous government of Pakistan Muslim League-Nawaz (PML-N) kicked off liquefied natural gas (LNG) imports from Qatar under a 15-year agreement two and a half years ago and is bringing supplies through other sources as well.

According to a government official, after signing the MoU for the offshore pipeline, work on the feasibility study will begin in an attempt to assess viability of the project. Russia is even ready to finance the study. Russian gas exports touched an all-time high in 2017. According to Gazprom, gas flows to Europe and Turkey, excluding ex-Soviet states, hit a new daily record at 621.8 million cubic metres.

Annual exports touched 179.3 billion cubic metres (bcm) in 2016, a significant jump from the previous high of 161.5 bcm in 2013 and well above the 2015 total of 158.6 bcm.

Published in The Express Tribune, June 3rd, 2018.

SOURCE: https://tribune.com.pk/story/1726303/1-pakistan-russia-set-sign-10b-offshore-pipeline-deal-next-week/?amp=1&__twitter_impression=true

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Russia, China tighten ties with Iran

Astana, Kazakhstan: Russia and China moved Thursday to extend their economic influence in Iran, while Europeans are finding it harder to ignore efforts by Washington to isolate Tehran economically.

In one of the most concrete moves yet against renewed US efforts to choke off Iran economically, a Russian-led trade bloc signed an interim trade deal with Iran and signaled plans to negotiate a free trade zone.

Meanwhile, Iran´s oil minister said that Chinese state-owned oil company CNPC was ready to replace Total on a major gas field project in Iran if the French energy giant pulls out.

The fate of Total´s participation in the gas project demonstrates the difficulty the European Union faces in resisting Washington´s move as European firms stand to lose much more from busting US sanctions.

Earlier this month US President Donald Trump´s controversially pulled Washington out of an international deal with Iran that placed limits on its nuclear programme in return for easing economic sanctions.

China, Russia and EU members Britain, France and Germany were also signatories of the 2015 pact, opposed Washington´s abandonment of the deal which Iran had respected.

But companies around the world now face a difficult choice as Washington has previously slapped huge fines on firms which bust US sanctions.

This week the EU launched work on a plan to keep the nuclear deal alive and French President Emmanuel Macron said Thursday that one reason is “so that our businesses can remain” in Iran.

However Total has indicated it will go forward with the investment only if it wins an exemption from Washington on the sanctions.

Other European firms are likely to make a similar calculation that the US market is worth much more to them than Iran.

Danish shipping giant Maersk Tankers said Thursday it would cease its activities in Iran, while German insurer Allianz has also announced it plans to wind down its business deals there.

– Less to lose –

Meanwhile Russia, one of the strongest defenders of the Iran nuclear deal, tightened its trade ties with Tehran.

In the Kazakh capital Astana, the Russia-led Eurasian Economic Union trade bloc signed an interim trade deal with Iran that lowers tariffs on hundreds of goods.

The bloc that also comprises Armenia, Belarus, Kazakhstan and Kyrgyzstan, also plans to begin three years of talks with Iran that aim to create a free trade zone.

Russian firms have less to lose from bucking US sanctions. Many major Russian companies are already operating under tightening US sanctions over Moscow´s seizure of Crimea and its role in the Ukraine crisis.

Russian companies also traded with Iran when US sanctions were in place before the deal.

“They are used to working within legal and economic constraints,” Igor Delanoe, an analyst at the Franco-Russian Observatory group, said recently.

“The US has systematically forced Iran to turn more towards Russia and China.”

– Resistance to comply –

Beijing also signalled that it intends to continue trading with Iran.

“Under the prerequisite of not violating its international obligations, the Chinese side will continue to carry out normal and transparent practical cooperation with Iran,” said foreign ministry spokesman Geng Shuang.

He added that “the Chinese government always opposes the unilateral sanctions and the so-called long-arm jurisdiction that any country takes according to its domestic laws.”

The US says its sanctions apply to any transactions that are conducted in dollars, which are used in most international transactions, in particular in trading of crude oil.

But China has for years been working to increase trade using its currency and in March a yuan-denominated oil contract was launched in Shanghai.

“With trade skirmishes between the US and China and all kinds of political issues, I see resistance from Chinese crude buyers to comply” with US sanctions, said Victor Shum, vice president of the Energy group at IHS Markit, on CNBC TV.

Chinese companies were involved in at least $33 billion of infrastructure projects in China as of June last year, with Chinese government-linked institutions providing much of the financing using euros and yuan to avoid US sanctions.

SOURCE: https://www.thenews.com.pk/latest/317959-russia-china-tighten-ties-with-iran

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Russia keen to invest in CPEC, Balochistan: Counsel General

QUETTA: Balochistan Governor Muhammad Khan Achakzai said China-Pakistan Economic Corridor (CPEC) was creating prosperous opportunities for profitable investment in Balochistan, while ‘we want the companions of the country to take timely advantage from the Russian Federation’.

He said this while talking with Russia’s Consul General Dr Aleksander G Khozin, who called him at Governor House on Thursday. He said that Russian investors would provide all facilities and security in Balochistan’s Gwadar.

During a meeting, they discussed the relations between Pakistan and Russia, and the implementation of CPEC in the country. Governor Muhammad Khan said Balochistan is basically an agricultural area where there is a special significance of various vegetable and fruit production.

They expressed satisfaction over Russia and Pakistan’s growing relations. Russian Consulate General said that ‘we could provide Russia with an easy route to central Asia for trade expansion’.

Governor Balochistan highlighted the importance of regional cooperation organisation and regional unity, saying that due to the effective role of these organisations, the possibility of cooperation and development has been increased in the region. He hoped that relations of both countries would be more stable in future which is for benefit of people of both the countries.

SOURCE: https://profit.pakistantoday.com.pk/2018/03/23/russia-keen-to-invest-in-cpec-balochistan-counsel-general/