Beijing may boost project spending in Russia amid rouble crisis
Although a direct handout is unlikely, China might help the Russian economy by boosting funding for projects, mainland analysts say
China is preparing to flex its financial strength amid the economic crisis in Russia as it closely watches how the slump of the Russian rouble affects cooperation between the two countries, mainland analysts have said.
They said Beijing was unlikely to send aid to Moscow, but it would boost infrastructure and investment projects to stop the collapse of the Russian economy, a result that would hurt the two nations' joint attempts to build influence in international affairs.
China and Russia have both described their relationship as reaching a "new stage" after the signing of massive cooperation deals in recent months, including an agreement for Beijing to import 38 billion cubic metres of gas annually, starting in 2019. Companies have already started talks about building the necessary pipeline to deliver the gas.
But a continued drop in the Russian economy could leave Moscow unable to complete the pipeline, and Chinese capital - possibly a concessionary loan - could be required, analysts said.
"This will affect delivery of the gas," said Wang Haiyun, a former attaché at the Chinese embassy in Moscow.
"China will actively consider whether Russia demands more Chinese investment input into the project."
