Keep up with the news by installing RT’s extension for . Never miss a story with this clean and simple app that delivers the latest headlines to you.

 

Russia, China may create common economic zone in Far East

Published time: May 24, 2014 15:11
RIA Novosti / Vitaly Ankov

RIA Novosti / Vitaly Ankov

Russia and China may set up a common economic zone in Russia’s Far East, the deputy head of China’s government, Li Yuanchao, said at the St. Petersburg Economic Forum.

He also said that big projects of strategic importance represent the key bases of the long-term trade and economic collaboration.

“We know that Russia sets a high value on the development of its Far East and views China in this respect as the priority partner. The Chinese government, for its part, approves of the activity of China’s business in this development,” Li Yuanchao stressed.

On top of that, he suggested uniting the program of the Russian Far East’s development and the development of northeastern China.

“In such a way, we can assist the integration of the workforce, material and financial opportunities of these two regions. And turn the two into a big market with effective allocation of resources in terms of capital and technologies – and gradually into a new economic bloc in Asia,” Li Yuanchao stated.

This comes just days after Moscow and Beijing signed a historic gas deal which will provide China with the natural gas it needs to keep pace for the next 30 years, starting from 2019.

The total value of the contract is $400 billion, Gazprom CEO Aleksey Miller said. This is the biggest-ever deal for the Russian gas giant.

Gazprom has so far not revealed the gas price for China, while Aleksander Medvedev, head of Gazprom Export, said it is above $350 per 1,000 cubic meters.

Infrastructure investment from both sides will be more than $70 billion and is set to become the world's largest construction project.

Russia is to supply China with 38 billion cubic meters of gas per year via the eastern 'Power of Siberia' pipeline, which crosses Siberia and reaches China's populous northeast regions. A route that could deliver gas to China's western provinces and provide diversification is also in the works, according to President Putin.

The landmark deal comes amid the Western community stepping up the sanctions against Russia over the Ukrainian crisis. This sanctions rhetoric by the West is something Chinese investors are going to take opportunity of.

They are ready to replace European companies if the EU goes on with the “irresponsible” policy of sanctioning Russia, Reiner Hartmann, chairman of the Association of European Businesses in Russia told RT in an exclusive interview.

“I’ve heard about 20 or 57 Chinese high-tech companies ready just to move in and replace Alstom, Siemens, BASF, and Bayer, just to name the few. It’s amazing!” he said.

The EU and the US have introduced several waves of sanctions against Moscow after the Republic of Crimea voted to cut ties with Ukraine and reunited with Russia in March. The restrictive measures target individual Russian politicians and businessmen, with travel bans and asset freezes introduced against them.

However, the EU government keeps repeating that idea of sanctions against specific branches of the Russian economy remains on the table.

Comments (23)

 

Pat Richards 10.07.2014 13:16

Great plan for China and Russia which will certainly attract more Asian countries to this very prosperous economic zone.

 

Marco Hsiao 27.06.2014 15:16

[Sino-Russia common economic zone would be great]

Now Shenzhen (near Hong Kong) and Xiamen (near Kinmen Island of Taiwan) are quite prosperous; and growing fast continually. Perhaps Kinmen Island could be developed as a common economic zone, too. Border cities between China and Vietnam are also moving prosperity steadily.

Possibly many border cities between Russia and China has great commercial potential; Sino-Indian border cities should be same. Border cities are easier to exchange innovation and civilization. Probably after 2019 East Asia will become new world trade center.

 

Yap Chong Yee 26.06.2014 19:54

This project in Russia's far east and China's north east fits so symbiotically and it is going to be huge; Russia has the land & untapped natural resources and China has the un-used huge reserves and man-power. Never in the history of mankind has such a gloden opportunity be put together for the benfit and advancement of two nations. I pray for the realization of this project. Anoher one for a multipolar world

View all comments (23)
Add comment

Authorization required for adding comments

Register or

Name

Password

Show password

Register

or Register

Request a new password

Send

or Register

To complete a registration check
your Email:

OK

or Register

A password has been sent to your email address

Edit profile

X

Name

New password

Retype new password

Current password

Save

Cancel

Follow us

Follow us