Russia asks China to co-operate on Arctic trade route

RUSSIA / FSU POLITICS - In Brief 23 Apr 2019 by Alex Teddy

The Russian ambassador to China is seeking Chinese co-operation on developing the Arctic trade route. Andrei Denisov, speaking on April 18, said this was linked to negotiations about Russian gas sales called Power of Siberia Two. Power of Siberia One is a gas deal due to expire in December this year. It supplied China with 38 billion cubic meters of gas a year for several years. Power of Siberia Two has price as sticking point. Moscow assures Beijing that it would be a reliable long term supplier. The Chinese would like to pay the rock bottom price but they cannot guarantee reliability for that. China is trying to reduce coal burning because it raises pollution to an intolerable level. Melting icecaps have made the Arctic more navigable than before. Russia owns about 50% of the land in the Arctic. The Chinese are developing their 'Belt and Road' trade routes. Another trade route would also be welcome in case existing trade routes are blocked. The US is increasingly worried about Russo-Chinese Arctic co-operation and has said so publicly. An Arctic Conference was held in St Petersburg earlier this month. Russia needs more icebreakers. Navigation and shipping facilities need to be expanded. The Chinese have been sending scientists to the Arctic since the 1990s. 8 of the 27 vessels that sailed the Arctic route last year were Chinese. Last year China built her first icebreaker. There is little doubt that Russo-Chinese co-operation will grow. The question is - on what terms?

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