(Tony Sifert, Headline USA) China’s state-owned energy firms are considering partnerships with their Russian counterparts in the aftermath of the heavy sanctions levied by the United States and the rest of the international community, according to Bloomberg News.
Pure hunch: China will position itself as a helpful neutral ready to mediate. It will quietly help Russia get round sanctions without drawing too much fire, reach out to India, and offer to help the Europeans deal with Putin. The iron fist will stay under the velvet glove.
— David P. Goldman (@davidpgoldman) March 8, 2022
“China is considering buying or increasing stakes in Russian energy and commodities companies, such as gas giant Gazprom PJSC and aluminum producer United Co. Rusal International PJSC,” Bloomberg reported.
The unnamed sources quoted by Bloomberg suggest that the deals would be pitched as an effort “to bolster China’s imports as it intensifies its focus on energy and food security” and not “as a show of support for Russia’s invasion in Ukraine.”
In February, the Chinese government criticized the West’s sanctions against Russia as ineffective and “illegal.”
The Biden administration, on the other hand, has decided to issue an executive order banning the importation of Russian oil, natural gas and coal, despite skyrocketing energy costs.
The “Fact Sheet” accompanying the order made reference to the U.S.’s “strong domestic energy infrastructure” but Biden admitted in his remarks that it was “self-evident” that his action would cause “prices to rise.”
Indeed, the president seemed to warn American companies against prices increases in response to his executive order.
“But — but, but, but ,” he stammered. “It’s no excuse to exercise excessive price increases or padding profits or any kind of effort to exploit this situation or Ameri- — or American consumers — exploit them.”
Our oil sanctions on Russia are strategically meaningless as China will begin to buy stakes in Russian oil companies to offset our sanctions. You are paying higher gas prices and commodity markets are being destabilized to further push Russia into the hands of China.
— J. (@PresentWitness_) March 8, 2022
