Russia and China are getting pretty friendly. How concerned should we be?

[not_what_you_d_expect]

There’s been a bit of talk today about Russia and China making a big gas deal. Is this as worrisome to others as it is to me? I see both of these countries behaving pretty aggressively lately and find myself concerned.

What are your thoughts?

http://www.businessweek.com/articles/2014-05-21/is-the-russia-china-gas-deal-for-real-or-just-fumes

[Punoqllads]

Two corrupt, authoritarian, aggressive states which border each other attempting to cooperate? Probably work out as well as in the 1950s.

[Procrustus]

A rising tide lifts all boats. I don’t see a problem for us if these two countries make a deal that works for them.

[Just_Asking_Questions]

Russia has always been cooperative with East Asia.

We have always been at war with East Asia.

[Der_Trihs]

Better that they feel cooperative than aggressive towards each other.

[levdrakon]

Well, Europe is liable to pull away from its dependence on Russian gas, so it makes sense for Russia to make new deals. No biggie, I don’t see a Russian-Chinese bloc forming.

[Terr]

Here’s the fun part: according to the details of the deal that were published in Russian press, the price of natural gas that China will pay is set to be $350 per 1000 m^3. According to the same press, the cost, to Gasprom (the Russian energy company) to produce the natural gas and deliver it to China is estimated to be $360-$400 per 1000 m^3. And that is only if the estimates of the cost of building the pipeline are correct. History shows that those estimates are usually way low.

So basically Russia is giving China natural gas at below cost, and losing money on every m^3 it supplies to China.

[Punoqllads]

The question is which oligarch gets to build the pipeline?

[buddha_david]

@Punoqllads

Two corrupt, authoritarian, aggressive states which border each other attempting to cooperate?

Hey now, there’s no need to reopen old wounds.

[Baker]

Russia and China hate each other with the fire of a million suns.

But that doesn’t mean you can’t do business together.

[the_diego]

Buy white wing tips. We’re back in the 50s.

[Punoqllads]

@buddha_david

Hey now, there’s no need to reopen old wounds.

Nihil sub sole novum.

[Mr_Quatro]

One big problem is that China is running out of girls for their guys and they sure could use a few female volunteers to cross the borders on week-ends.

and of course there is this little insignificant problem that may crop up someday:

http://www.handofhelp.com/vision_36.php

A Vision Received by Brother Dumitru Duduman April 22, 1996 … Then, the man spoke again, “When America goes to war with China, the Russians will strike without warning.”

[NotfooledbyW]

@Terr

Here’s the fun part: according to the details of the deal that were published in Russian press, the price of natural gas that China will pay is set to be $350 per 1000 m^3. According to the same press, the cost, to Gasprom (the Russian energy company) to produce the natural gas and deliver it to China is estimated to be $360-$400 per 1000 m^3. And that is only if the estimates of the cost of building the pipeline are correct. History shows that those estimates are usually way low.

So basically Russia is giving China natural gas at below cost, and losing money on every m^3 it supplies to China.

Not so fast: Up front money from China is part of the deal:

In exchange for a lower price, China offered a loan of about $US50 billion that will finance development of the gas fields and the construction of the pipeline by Russia up to the Chinese border, Dr Skalamera said. The Chinese would build the remaining pipeline, and gas is scheduled to start pumping in 2018.

Russia and China in 30-year deal for natural gas