Posts tagged ‘Russia’

07/03/2013

* China’s Central Asia Problem

International Crisis Group: “Since the collapse of the Soviet Union, China and its Central Asian neighbours have developed a close relationship, initially economic but increasingly also political and security. Energy, precious metals, and other natural resources flow into China from the region.

Chinese President Hu Jintao and Kazakhstan's President Nursultan Nazarbayev review Chinese honour guardsInvestment flows the other way, as China builds pipelines, power lines and transport networks linking Central Asia to its north-western province, the Xinjiang Uighur Autonomous Region. Cheap consumer goods from the province have flooded Central Asian markets. Regional elites and governments receive generous funding from Beijing, discreet diplomatic support if Russia becomes too demanding and warm expressions of solidarity at a time when much of the international community questions the region’s long-term stability. China’s influence and visibility is growing rapidly. It is already the dominant economic force in the region and within the next few years could well become the pre-eminent external power there, overshadowing the U.S. and Russia.

Beijing’s primary concern is the security and development of its Xinjiang Autonomous Region, which shares 2,800km of borders with Kazakhstan, Kyrgyzstan and Tajikistan. The core of its strategy seems to be creation of close ties between Xinjiang and Central Asia, with the aim of reinforcing both economic development and political stability. This in turn will, it is hoped, insulate Xinjiang and its neighbours from any negative consequences of NATO’s 2014 withdrawal from Afghanistan. The problem is that large parts of Central Asia look more insecure and unstable by the year. Corruption is endemic, criminalisation of the political establishment widespread, social services in dramatic decline and security forces weak. The governments with which China cooperates are increasingly viewed as part of the problem, not a solution, as Chinese analysts privately agree. There is a risk that Central Asian jihadis currently fighting beside the Taliban may take their struggle back home after 2014. This would pose major difficulties for both Central Asia and China. Economic intervention alone might not suffice.

There are other downsides to the relationship. Its business practices are contributing to a negative image in a region where suspicions of China – and nationalist sentiments – are already high. Allegations are growing of environmental depredation by Chinese mines, bad working conditions in Chinese plants, and Chinese businessmen squeezing out competitors with liberal bribes to officials. Merited or not, the stereotype of China as the new economic imperialist is taking root.

Beijing is starting to take tentative political and security initiatives in the region, mostly through the Shanghai Cooperation Organisation (SCO), which, however, has shown itself ineffective in times of unrest. The other major external players in Central Asia are limited by their own interests or financial capacity. The speed of the U.S. military pull-out from Afghanistan is causing concern in Chinese policy circles, and though Russia claims privileged interests in Central Asia, it lacks China’s financial resources. It is highly likely in the near- to mid-term that China will find itself required to play a larger political role.

China’s well-trained and well-informed Central Asia specialists are among those who fear that a disorderly or too rapid withdrawal of NATO troops from Afghanistan could lead to serious regional unrest – civil strife possibly, the dramatic weakening of central governments, or the escalation of proxy battles among Afghanistan’s neighbours leading to their destabilisation and, most worryingly, Pakistan’s. They are critical of Central Asian leaders’ corruption and lack of competence, as well of the criminalisation of political establishments in the region, and privately express great concern about the long-term prospects for the two weakest states, Kyrgyzstan and Tajikistan. They are as anxious as the West, probably more so, about the region’s vulnerability to a potential well-organised insurgent challenge, from within or without.

This concern has led Chinese policymakers to consider engagement with elements of the Taliban, in an effort to induce them to scale back their perceived support for Uighur separatist groups, such as the East Turkestan Islamic Movement (ETIM). The depth of Beijing’s worry over possible threats emanating from Afghanistan was demonstrated when it sent its then security chief, Zhou Yongkang, to Kabul in September 2012, just before China’s once-in-a-decade leadership transition. Zhou, the most senior Chinese official to visit in 50 years, pledged reconstruction assistance and limited security help in the form of police training. Though publicly they support Central Asian leaders and express confidence in their political viability, Chinese policy makers have yet to come up with a clear plan to work toward stability in both Afghanistan and Central Asia.

China has unambiguously ruled out any sort of military intervention in its uneasy Central Asia neighbourhood, even in a case of extreme unrest. In the coming years, however, events may force its leadership to make difficult decisions. It will almost surely need to use at least more active diplomatic and economic engagement to grapple with challenges that pose threats to its economic interests and regional stability.

via China’s Central Asia Problem – International Crisis Group.

13/02/2013

* Russia plans $25-$30 billion oil-for-loans deal with China

Reuters: “Rosneft is seeking to borrow up to $30 billion from China in exchange for possibly doubling oil supplies, making Beijing the largest consumer of Russian oil and further diverting supplies away from Europe.

A logo of Russian state oil firm Rosneft is seen at its office in St. Petersburg, October 18, 2012. REUTERS/Alexander Demianchuk

Four industry sources familiar with the situation told Reuters Rosneft was in talks with China’s state firm CNPC about the borrowing, which would echo a $25 billion deal the two companies clinched last decade.

Back then, Rosneft and Russian pipeline monopoly Transneft borrowed money to help Rosneft acquire the assets of nationalized oil producer YUKOS while agreeing to build a pipeline to supply China with 300,000 barrels per day for 15 years.

This time, Rosneft wants to borrow money as it is close to completing a $55 billion acquisition of rival TNK-BP to become the world’s largest oil producer among publicly traded firms.

Russia’s leading oil company, controlled by the Kremlin, is considering ultimately doubling supplies to China, sources said.

“It can be a combination of delivery options. The strategic line is to increase supplies to China,” one source familiar with the situation said.

“The reason why China is willing to lend is simple. They sit on over 3 trillion of dollars in reserves and are looking to diversify their investments,” he added referring to China’s forex reserves of $3.3 trillion.

Rosneft and CNPC declined comment.”

via Exclusive: Russia plans $25-$30 billion oil-for-loans deal with China | Reuters.

07/12/2012

* PLA signs preliminary deal for 24 Russian Su-35 jet fighters

Rare admission that China’s technology may not be up to it.

South China Morning Post: “A preliminary deal for the sale of 24 advanced Russian Su-35 jet fighters to the People’s Liberation Army indicates the technological hurdles China faces in developing its own J-20, especially in terms of engine technology, military analysts say.

scmp_01dec10_fr_plane3_13_11_08_66_sm_19070747.jpg

Mainland and Russian media reported last month that Beijing might purchase 24 Su-35s, an updated version of the fourth generation Su-27, for US$1.5 billion. The deal was first proposed by Moscow two years ago.

Beijing expressed interest in purchasing only four Su-35s last year, but that was rejected by Moscow, which had originally expected China to buy 48 planes, Moscow’s Vedomosti business daily quoted an official from Russia’s Federal Service for Military and Technical Co-operation as saying.

It also quoted Igor Korotchenko, head of the Russian Defence Ministry’s public council, as saying Moscow also asked Beijing to sign an agreement not to make copies of the Su-35.

A Beijing-based PLA senior colonel, who requested anonymity, said: “We decided to buy the Su-35 because it’s a fact that our home-made engines have failed to measure up to the Russian products.”

He said China was still playing catch-up, despite recent headlines hailing its progress on military modernisation.

“Engines have been the biggest headache and we are still trying to cope with it,” he said. “The purchase of the Su-35s might help our J-20 project, but there are too many deeper problems hiding in our military industrial system that are hindering our research and development.””

via PLA signs preliminary deal for 24 Russian Su-35 jet fighters | South China Morning Post.

10/10/2012

* Russia further delays delivery of Admiral Gorshkov to India

It would seem a mini-arms race is on between India and China.  Although India already has two aircraft carriers, one is being retired and the other undergoing a five-month refit.  Fortunately, there is no known marine based territorial dispute between India and China, Curiously, India has been getting its carriers from Russia’s obsolete fleet and China from Ukraine’s retired fleet!

Times of India: “Russia delayed delivery of a trouble-plagued aircraft carrier for at least a year on Friday, a blow to India’s efforts to quickly build up naval strength as increasingly assertive Asian rival China expands its maritime reach.

INS Vikramaditya is anchored at Sevmash factory in northern city of Severodvinsk

Originally built as the Admiral Gorshkov in the Soviet Union, the $2.3 billion aircraft carrier is being reconditioned and was due to be ready this year, but problems with the ship’s boilers have pushed the delivery date back several times.

“We believe the handover of the ship will take place in the fourth quarter of 2013,” Russian defence minister Anatoly Serdyukov said at a joint news conference with his Indian counterpart in New Delhi.

Defence minister AK Antony said he had conveyed “serious concern” at the delays to Serdyukov.

The bilateral meeting precedes a visit by Russian President Putin to New Delhi on November 1.

The ship is to be renamed as Vikramaditya and the success of the order is seen as an important test of defence ties between Russia, the world’s second-largest arms exporter, and its biggest customer.

India, a big buyer of Soviet Union weaponry, still relies on Russia for 60 percent of its arms purchases, but has diversified its suppliers in recent years. Israel is now the No. 2 seller, and countries like the United States and France also increasing their presence.

“I myself expressed serious concern about the delay,” Antony said, adding that the issue had been raised several times. He said he was putting pressure on both sides to finish work on the biolers as soon as possible, but said he had not discussed penalising Russia so far.

India is closely watching the Chinese navy’s newly assertive stance in the South China Sea and in a dispute with Japan over contested islands that have raised tensions in East Asia this year.

India bought its first, British-built aircraft carrier in the 1960s, which was decommissioned in 1997. Another ex-British carrier, the INS Viraat, is in operation but is reaching the end of its useful service.”

via Russia further delays delivery of Admiral Gorshkov to India – The Times of India.

07/10/2012

* India poised for giant leap in space science, 56% jump in collaboration with US, France, Russia

India is in an undeclared space race with China. The difference is that China is doing it alone whereas India is doing it collaboratively with several other countries. Both are making substantial progress.

Times of India: “India may have taken a giant leap into the hallowed club of space research, with leaders like the United States and Russia, increasingly joining hands with Indian space scientists in quest for the unknown. Latest data on India’s international collaboration in space sciences has shown an almost 56% increase between 2001-05 and 2006-10.

Between 2001 and 2005, 629 publications were internationally co-authored between Indian and international space scientists. The output increased to almost 980 publications by 2006-10 — a growth of 55.8% in raw volume.

These internationally co-authored publications, which contributed to 45.2% of India’s total research output in 2001-05 increased to 47.1% by 2006-10.

The analysis, done by Thomson Reuters and submitted to the ministry of science and technology, says these levels of international cooperation are the highest among all the fields under analysis. The US was India’s most frequent collaborating partner in this field with American researchers co-authoring 465 publications with their Indian counterparts — 22.3% of India’s total research output in space science.

France was the second most important collaborating partner with India, co-authoring 206 publications with Indian researchers in 2006-10. France accounted for 9.9% of India’s total research output in this field, an increase of 1.7% since 2001-05.

Collaborating in space science as percentage of India’s total research output in this field also increased with the UK (+0.8%) and Germany (+1.4%), Russia (+1.9%), Spain (+1.4%), Australia (+0.7%) and the Netherlands (+0.7%). Collaboration has increased substantially across the board with all major countries.

Consider the case of Russia. Indian and Russian space scientists co-authored 29 papers between 2001 and 2005, and the output increased to 82 papers between 2005 and 2010. Ditto for Germany. As against 98 papers co-authored in 2001-05, the output rose to 175 in 2006-10.

via India poised for giant leap in space science, 56% jump in collaboration with US, France, Russia – The Times of India.

28/04/2012

* China, Russia sign 27 contacts worth 15 billion USD

Xinhua: “China and Russia have signed 27 trade contracts worth 15 billion U.S. dollars, Chinese Vice Premier Li Keqiang said here on Saturday.

Li attended the signing ceremony of the contracts before a meeting on China-Russia trade and investment. Addressing the meeting, Li proposed that both China and Russia endeavor together to further promote their trade and economic cooperation. The two countries could expand their cooperation in various fields, including finance, direct investment, energy, mechanical and electronic products, he said. Russian First Deputy Prime Minister Igor Shuvalov also attended the meeting.

China is the top trade partner of Russia. Bilateral trade volume reached 79.25 billion U.S. dollars in 2011, up 42.7 percent year-on-year.”

via China, Russia sign 27 contacts worth 15 billion USD – Xinhua | English.news.cn.

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27/04/2012

* China’s vice-premier starts landmark European mission

Li Keqiang, Chinese politician

Li Keqiang, Chinese politician (Photo credit: Wikipedia)

China Daily: “Visit covers Russia, Hungary, Belgium and EU headquarters

Business opportunities will emerge from the economic development of China and Russia and both countries will benefit from increasing prosperity and global influence, Vice-Premier Li Keqiang said on Thursday. “The two countries are in total agreement on this point,” Li said in a Russian newspaper article.

The vice-premier started a 10-day visit on Thursday, to promote trade and investment. He will visit Russia, Hungary, Belgium and EU headquarters in Brussels.”We view each others growth as opportunities because both nations share similar targets,” Li said.”

via Chinas vice-premier starts landmark European mission|Politics|chinadaily.com.cn.

The wooing continues unabated; Premier Wen visits Iceland, Sweden, Germany and Poland, then VP Li visits Russia, Hungary, Belgium and EU.

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21/03/2012

* UN unites on Syria – including China and Russia

President Bashar al-Assad of Syria . Original ...

President Bashar al-Assad of Syria . Original background. (Photo credit: Wikipedia)

Reuters: “The UN Security Council, including Russia and China, threw its weight on Wednesday behind

Mr. Kofi Annan, former General Secratery of th...

In a statement approved by all its 15 members, the council threatened Syria with unspecified “further steps” if it failed to comply with Annans peace plan, which calls for a ceasefire and demands swift access for aid agencies.

Although the original statement was diluted at Russias demand, editing out any specific ultimatums, the fact that all world powers signed up to the proposal dealt a serious blow to President Bashar al-Assad as he battles a popular uprising.

via U.N. unites on Syria, sanctions set for Assads wife | Reuters.

19/03/2012

* India displaces China as world’s largest arms importer

Times of India: “India has become the worlds biggest importer of arms, displacing China by accounting for 10 per cent of global arms sales volumes. Over the past five years, Indias imports of major weapons increased by 38 per cent between 2007-11, a Swedish security think tank said with Asia topping other regions in arms imports.

The Stockholm International Peace Research Institute SIPRI in its new report said that India was closely followed by China and Pakistan whose weapons imports constituted 5 per cent each of global sales. Pakistan took delivery of “significant numbers of combat aircrafts during this period : 50 JF-17s from China and 30 F-16s from US,” SIPRI said. The Swedish think tank said China which had been world’s top arms importer in 2006-2007 has now dropped to fourth place, attributing this to improvements in the country’s arms industry and its rising arms exports.

SIPRI said China is now world’s sixth largest world exporter of weapons behind the US, Russia, Germany, France and UK.But “while the volume of Chinas arms export is increasing, this is largely a result of Pakistan importing more arms from China. “Beijing has not achieved a major breakthrough in any other significant market,” the report said. According to SIPRI estimates India is likely to spend more than USD 100 billion on weapons and systems in the next 15 years.”

via India displaces China as worlds largest arms importer – The Times of India.

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25/02/2012

* Indian government action ref nuclear plants

The Hindu: “Close on the heels of the publication of Prime Minister Manmohan Singh’s assertion in an interview in the latest issue of journal Science that some United States-based NGOs are behind the agitation against the Kudankulam nuclear power plant, the Centre on Friday announced the revocation of the licences of three NGOs.

MESSAGE TO MOSCOW

Simultaneously, India told Russia, which is collaborating with India in the 2,000-MW plant, that the government was engaged in consultations with all stakeholders and appreciated Moscow’s patience.

At ‘Comprehensive Foreign Office Consultations,’ Foreign Secretary Ranjan Mathai told Russia’s First Deputy Foreign Minister Andrei Denisov on Thursday that India was consulting various domestic constituencies and working on the opening of the first 1,000 MW unit, a process that would pave the way for operationalising the second unit six months later.

The Centre has offered half of the electricity to be produced to Tamil Nadu, where four more units have been planned.”

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