Russian president Vladimir Putin will meet with Chinese President Xi Jinping in Shanghai. A lot of energy experts thought they would finally sign a multi-billion dollar natural gas deal. But it has not happened yet.Talks started back in the late 1990s. Meanwhile, stakes are rising for both parties.
China’s energy demands are growing.Last year, China imported 60 percent of its oil and 30 percent of its gas. Russia is the world’s largest has exporter and with the European fallout from the Ukraine crisis, Russia is ripe for new customers.
But two issues keep getting in the way of an agreement. The main sticking point is pricing for the 30-year deal. The other concern is China wants to build two pipelines. But Russia prefers a single pipeline that China would share with Japan and South Korea.
CCTV’s Phillip Yin discusses China-Russia energy talks with Su Xiaohui, an expert from the China Institute of International Studies and Kent Moors, Chairman, Global Energy Symposium.