Sébastien Le Belzic 06:12, March 02, 2022
Business continues between Moscow and Beijing.
The two countries signed on Tuesday in the midst of an international crisis a new mega contract for the construction of a gas pipeline which will cross Mongolia and China, allowing the transport of up to 50 billion cubic meters of gas per year.
A real snub to the international community.
While economic and diplomatic sanctions are raining down on Russia, it is therefore a real snub to the international community with what is already shaping up to be the largest natural gas supply contract in history.
The construction of this gas pipeline which will link Siberia to China by crossing Mongolia will have a capacity of 50 billion cubic per year, i.e. almost the same volume as the famous Nord Stream 2 gas pipeline which was to link Russia to Germany and whose authorization was suspended following the sanctions.
A quarter of world trade
"Russia exports 650 million cubic meters of natural gas per day, which represents a quarter of world trade, 85% of which was exported to Europe. Because during the conflict, the gas exported from Russia to Europe by the gas pipeline system is necessarily affected", explains to the microphone of Europe 1 Liu Xinwei, researcher in an economic intelligence firm in Beijing.
>> Find the morning of the day in replay and podcast here
A strategic contract
And that's good business for China.
The country is experiencing a bulimia of energy.
This winter, power shortages have shut down thousands of factories.
This Russian gas is therefore also a godsend for the second largest economy in the world, which is signing a strategic contract to build a real parallel economy to the great displeasure of Western countries.