Bloomberg reports on the fact that China is considering major new investments in Russia’s food and energy sectors, on top of existing large joint ventures around natural gas pipelines, but the wire service chooses to whistle past the graveyard and paint a bleak picture for the two countries.
“Russia has become a nearly un-investable market for global firms as the nation’s economy rapidly deteriorates. Sanctions have wiped billions of dollars from Russian assets and bonds have plummeted as default risks intensify. The yuan has surged against the ruble, raising questions over the strategic relationship of both countries.”
According to Bloomberg, China is considering buying or increasing stakes in Russian gas giant Gazprom and aluminum producer United Co. Rusal International. China already has major joint projects with Russia, including a 20% stake in Yamal LNG pipeline project and a 10% share in Arctic LNG 2. Bloomberg admits that, in light of the blistering sanctions being imposed on Russia by the West, “an investment by China could help solidify Moscow’s effort to accelerate a so-called `Pivot to Asia’ with oil and gas supply deals. China has doubled purchases of Russian energy products to nearly $60 billion over the last five years.”
