The United States and European Union continue to impose sanctions on Russia following Moscow’s intervention in the Ukraine crisis, but the sanctions will only help strengthen the economic and military cooperation between Moscow and Beijing, reports China’s state-run Global Times.
China’s iron and steel, aerospace and energy industries are all set to see a boost as the US and EU attempts to isolate Moscow due to the Crimea issue, the paper said.
Vladimir Potanin, chief executive of Russian nickel and palladium producer Norilsk Nickel, told the Moscow-based Vedomosti that the firm is considering plans to expand its trade with Asian nations such as China and Japan. Potanin added that the company will use Chinese yuan when trading with China.
A spokesperson for Metalloinvest, a Russian mining and metallurgy enterprise specializing in the manufacture of steel, stated that the company is also trying to sell more of its products to China and other Asian countries through the Trans-Siberian Railway.
The Russian aerospace industry is also hoping for cooperation with China, the paper said. China is capable of designing and producing 98% of the parts needed for its satellites, Russia, on the other hand, purchases most of the electronic components for its satellites from the United States or other Western nations. The current sanctions against Russia will force Moscow to reconsider this arrangement and look elsewhere for the critical parts needed to design its GEO-IK-2 military satellite.
Ivan Moiseyev, head of Russia’s Institute of Space Policy, stated that the sanctions may help Russia to find a way to design its own electronic components. About 75% of the electronic components of the Russian satellite navigation system GLONASS are from the United States, according to Moiseyev. He added that is more important for Russia to develop its own electronic component industry instead of continuing to purchase parts from other nations, including China.
Meanwhile, Russia may chose to expand the investment of its oilfield located at Vankor in the Turukhansk district of eastern Siberia’s Krasnoyarsk Krai, the paper said. This move will be aimed at the Chinese market, with Moscow considering whether to reduce the price of natural gas exported to Beijing.