Russia and China: What Does Gas Deal Mean for Alliance?

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Russia and China: What Does Gas Deal Mean for Alliance?

Russia and China have signed one of the biggest gas deals in history. The two countries have also just concluded joint military exercises. Is this the start of a powerful union between new allies? Or is it a strategic relationship of convenience?

Russian President Vladimir Putin has wrapped up his visit to Shanghai where he met with Chinese President Xi Jingping. Putin was there to attend the Conference on Interaction and Confidence Building Measures in Asia.
The two leaders signed a 400 billion dollar gas deal– one of the world’s biggest energy deals. They also conducted joint naval exercises in the East China Sea.

CCTV’s Zhang Nini reports from Beijing with the latest developments between the two nations.

China and Russia have conducted a week of joint naval exercises. Warships, submarines and aircraft took part in the “Joint Sea 2014” drills.

How does each nation stand to benefit from this? How does this affect geo-politics in Europe and the United States?

To discuss we were joined in the studio by Chris Chivvis, a political scientist at the RAND Corporation. Vasily Kashin, a Senior Research Fellow from the Center for Analysis and Strategies and Technologies in Moscow. And from Beijing, we have Zhou Jingxing, a counselor at the Chinese foreign ministry.

What does the multi-billion dollar gas deal between Russia and China mean for international business and trade?

Analysts say it’s among the biggest pipeline deals in history. Russia and China have signed a 400 billion dollar, 30-year gas deal. The deal made between Russia’s Gazprom and China National Petroleum Corporation will allow Russia to build a pipeline originating in Siberia to ultimately pump 38 billion cubic meters of natural gas to China every year.