The Great Game Changer: Belt and Road Intiative (BRI; OBOR)

[AndrewJin]

I guess the current configuration: China+Russia vs. UK-US-France is fine and almost dysfunctional. LOL.

It's very hard to add another which has no idea to join which side. There is no room for a so-called power to be a fence-sitter, which is only ideal for small countries.

 

[TaiShang]

It's very hard to add another which has no idea to join which side. There is no room for a so-called power to be a fence-sitter, which is only ideal for small countries.

Exactly. That's the issue. Nobody wants a third pole just as nobody wants the other side to have an extra ally.

The fact that no UN resolution passed the UNSC during the entire Cold War should tell us something about the "role" the UNSC plays. I like a dysfunctional Security Council than a working one because we have seen how it ended up in Libya when they agreed (China, Russia etc.abstained).

Besides India is not on par with any of the P5. It does not qualify.

 

[AndrewJin]

Exactly. That's the issue. Nobody wants a third pole just as nobody wants the other side to have an extra ally.

The fact that no UN resolution passed the UNSC during the entire Cold War should tell us something about the "role" the UNSC plays. I like a dysfunctional Security Council than a working one because we have seen how it ended up in Libya when they agreed (China, Russia etc.abstained).

Besides India is not on par with any of the P5. It does not qualify.

You know index shows sub-Saharan Africa has less poverty and more GDP than Indian subcontinent. I think sub-Saharan Africa as a whole should be also entitled with a permanent member if India will be one.

 

[LacViet]

Why Doesn’t Russia Support China in the South China Sea?
Strategic and political factors keep Moscow from backing Beijing on the South China Sea disputes.

Recently, tensions over maritime disputes in the South China Sea seem to have surpassed even those caused by the Senkaku/Diaoyu Islands. China and Vietnam are embroiled in their worst political conflict in decades over an oil drilling platform near the Paracel Islands. The resulting anti-China protests in Vietnam brought China-Vietnam relations to a temporary halt. In addition, the Philippines’ detention of Chinese fishermen has increased the discord between China and the Philippines. With all these frictions occurring at the same time, the situation in the South China Sea has suddenly become very serious.

Against this background, we have seen the U.S. criticize China, express support for Vietnam, and shield the Philippine military. But we have not heard Russia, China’s “strategic partner,” take a stand on the South China Sea disputes, much less publicly support China’s position. This has upset some people in China, who now think that China-Russia relations aren’t as good as previously imagined. Even on the Senkaku/Diaoyu dispute between China and Japan, Russia has kept an ambiguous position. In my eyes, however, this does not mean that Russia’s is of two minds in its relationship with China. Instead, there are complicated political and strategic factors, including four main reasons I will list below.

First, the China-Russia relationship is different from U.S.-Philippines relations. China and Russia are not allies. There is no alliance treaty between them, while there are security treaties between the U.S. and the Philippines as well as between the U.S. and Japan. In an alliance relationship, each side has treaty obligations to provide political and even military support to its partner. In international relations, this is the highest-level type of bilateral relationship. While the China-Russia relationship has some characteristics of a comprehensive strategic partnership, the two parties are not bound by treaty obligations to strive for each other’s international space and national interests.

For a long time, China’s state media has been emphasizing and promoting the positive factors in China-Russia relations, while overseas media also often over-praise this relationship. Sometimes media outlets even posit that China and Russia are “allies” without an alliance treaty. This has led many people to believe that China-Russia political cooperation is boundless, causing a great improvement to China’s security situation. But the facts of international relations tell us that no matter how good the China-Russia relationship is, it won’t influence China’s basic policy in the South and East China Seas. The fact is that China-Russia relations are fundamentally based on mutual interests. The South China Sea is not a place where Russia can expand its interests, nor is it necessary for Russia to interfere in this region absent a formal alliance with China. Chinese people cannot misinterpret the character of China-Russia relations and expect too much from Russia.

Second, Russia enjoys good relations with countries bordering the South China Sea and does not need to offend Southeast Asia for the sake of China. As noted above, Russia is not enthusiastic about publicly backing China on the South China Sea issue. One of the most important reasons for this is that Russia enjoys good relations with many of the Southeast Asian countries.

For example, Russia’s predecessor, the Soviet Union, was historically even closer to Vietnam than it was to China. Because of the USSR’s strong support, Vietnam was able to fight off the United States. Afterward, Vietnam began to undertake anti-China activities, again with Soviet backing. After the collapse of the USSR, Russia inherited this extraordinary friendship. There are no major obstacles to the development of the Russia-Vietnam relationship — there are no serious disputes or conflicts on either the historical or the practical level. And there is one particular area of cooperation between the two countries: defense, where cooperation has stretched from World War II to today. Many of Vietnam’s weapons come from Russia, such as the Kilo-class diesel submarines fueling the growth of Vietnam’s navy. In addition, in the second half of 2014 Russia will deliver four Su-30MK2 fighters to Vietnam, which could potentially become weapons in a future China-Vietnam confrontation.

Russia also enjoys a good relationship with the Philippines. For example, two years ago, three Russian navy vessels (including the anti-submarine destroyer Admiral Panteleyev) arrived in Manila for a three-day port visit. According to Russia, this visit helped improve Russia-Philippine ties.

Third, it’s unnecessary for Russia to seek out a direct confrontation with the U.S. over the South China Sea. Currently Russia’s focus is on Europe, especially the Ukraine crisis that has already solidified the confrontation between Russia and the West. Such a problem will be difficult to solve in the short term. Given this, Russia has neither the desire nor the ability to confront the U.S. in the South China Sea.

Besides, the South China Sea disputes are not really conflicts between China and the United States. The disputes stem from disagreements between the South China Sea border countries about the history and the status quo of maritime rights. The U.S. is only an influencing factor, not a determining factor that will determine the future of the situation. In this context, as an outsider and bystander, Russia has even less of a motivation to support China and criticize the U.S.

Fourth, the development of China has actually caused some worries within Russia. To some people in the West, the discord between China and other South China Sea countries could help restrict China’s “expansion” into other regions. In Russia, there has always been some concern that China’s development will lead to the Russian far east being gradually “occupied” by the Chinese, with this vast territory, along with its resources, becoming fodder for China’s development. Although Russian officials are optimistic about the potential for cooperation in the far east, they have never for a moment relaxed their guard against China’s so-called “territorial expansion.”

There is no need for China to feel doubtful and disappointed about Russia’s stance on the South China Sea disputes. Dozens of years of sounding each other out has formed the foundation for tacit agreements and mutual understanding in the China-Russia relationship. For example, on the issue Russia currently takes most seriously, the Crimea question, China refrained from publicly supporting Russia, choosing instead to abstain from the U.N. Security Council vote. However, this doesn’t mean that China opposes Russia’s position. By the same logic, Russia’s neutral stance in the South China Sea disputes doesn’t mean that Russia doesn’t support China. Russia has its own ways of supporting China, such as the recent China-Russia joint military exercises in the East China Sea. This display of deterrence caused envy and suspicion in the West. China and Russia leave each other ample room for ambiguous policies, which is actually proof of an increasingly deep partnership. This arrangement gives both China and Russia the maneuvering space they need to maximize their national interests.

Why Doesn’t Russia Support China in the South China Sea? | The Diplomat

 

[Viet]

The Philippines' Massive Lawfare Blunder in the South China Sea | The National Interest

"In 1986, the United States openly defied a clear order from the International Court of Justice to withdraw support for the Contras and the mining of harbors in Nicaragua. Although the U.S. was condemned in the UN General Assembly, the reputational fallout was minimal and quickly forgotten. In 2008, the U.S. again ignored a clear order of the ICJ by failing to stop an execution of a Mexican national in violation of a treaty obligation. This time, the U.S. did not even face a negative General Assembly resolution."

"In 2013, for instance, Russia refused to participate in a hearing before the International Tribunal for the Law of the Sea (ITLOS) over its detention of a Dutch ship full of Greenpeace activists protesting its oil drilling activities. Although the ITLOS ordered Russia to release the activists and return the ship within 30 days of its judgment, Russia ignored the order and waited nearly a year before finally releasing the seized Dutch vessel. Russia suffered little long-standing reputational damage and hosted the Olympics with great fanfare barely two months later with little international fuss."

"China has (like many other nations) excluded disputes related to maritime boundaries from the dispute settlement processes created by UNCLOS. So China is probably correct that at least some of the Philippines’ claims, which essentially demand that the tribunal recognize Philippines’ sovereignty rights, are beyond the arbitral tribunal’s competence."

1. the US is not a member of UNCLOS. nobody is forced to join the convention. nor accept international court of justice.

2. Article 287 gives UNCLOS members the option to accept international arbitration or not. it is not a must. Russia does not want it, nor China. the Philippines accepts international arbitration, so Vietnam.

3. Every member state can make declarations whatever they please. so China. you put exceptions at the time of signing and upon ratification. Vietnam is no difference. we declared Hoang Sa and Truong Sa are our territories. Virtually every member state puts exception to the convention. but these declarations do not change the legal framework of the convention. Article 310.

As far as UNCLOS is concerned, no laws are broken as China put an exemption clause before signing it.

But at the end of the day, nothing is international law if the P5 does not say so. That's the reality. I understand why India is dying to join.

exactly, at the end of the day, only the fire power matters. the more the better.

Argentina and Spain challenge UK´s occupation of Falkland and Gibraltar. if the pepple of Argentina and Spain want to take back the islands, they must declare war on UK and defeat the british army on battlefields.

 

[TaiShang]

Russia and China Hold Talks on Broadening Nuclear Cooperation / Sputnik International

Russia and China are discussing further broadening of bilateral cooperation in the sphere of nuclear development.

HANOI (Sputnik) – Russia and China are discussing further broadening of bilateral cooperation in the sphere of nuclear development, an anonymous source told journalists on Monday.

"The expansion of cooperation between the Russian Federation and China in the nuclear sphere is being actively discussed," the source said, adding that talks on the construction of the seventh and eighth units of the Tianwan Nuclear Power Station in China are in the final stage.

The Tianwan Nuclear Power Plant, located on the Chinese coast and considered to be the safest in the world by the International Atomic Energy Agency (IAEA), was constructed using Russian nuclear power equipment and service export monopoly Atomstroyexport. It began operation in 2007.

China Should Speed Up Its Nuclear Development to Meet 2020 Goals

The Tianwan nuclear energy complex will comprise eight generating units when it is fully completed.
Russian and Chinese officials signed a major memorandum of understanding in March 2014 that laid the groundwork for future energy cooperation between the two countries.

The memorandum led to agreements on the joint construction of a series of floating nuclear power plants in China.

According to CEO of the Russian state nuclear energy corporation Rosatom Sergei Kiriyenko, his company views the Asia-Pacific market as a priority for the Russian nuclear industry.

 

[TaiShang]

Learning Mandarin in the tundra - Russia invites China into oil business
VANKOR/SUZUN OIL FIELDS, Russia | By Vladimir Soldatkin

Pipelines to be laid to transport oil to Vankor are seen at the Rosneft company owned Suzunskoye oil field, north from the Russian Siberian city of Krasnoyarsk, March 26, 2015.
Reuters/Sergei Karpukhin


(Reuters) - Russia's freezing north has never been the most welcoming place for foreign travelers, and its onshore oil riches have always been state secrets. But when the order comes from the Kremlin to open up, people obey.

Last September, President Vladimir Putin, who has been seeking new markets in Asia for Russian energy exports to replace traditional customers in Europe, announced that he would welcome Chinese investment in Vankor, a vast new oil field in remote eastern Siberia owned by state firm Rosneft.

Since then, delegations from both China and India have been flown out to visit the field in the remote tundra.

Some of the workers, who spend four weeks at a time at the isolated station - where temperatures can fall as low as minus 60 Celcius (minus 76 Fahrenheit) - have duly taken up Mandarin.

"No problem. We will work with the Chinese workers if need be," said Alexei Zyryanov, deputy head of an oil and gas production unit.

All of Vankor's output of 440,000 barrels per day of crude is already shipped east, via the East Siberia-Pacific Ocean pipeline, which includes a spur feeding China's northeast.

But a proposed Chinese investment in a stake in the project would go far further than Moscow has ever gone before to luring Beijing into its hydrocarbon industry.

Rarely has Moscow considered offering an ownership stake in such a big strategic onshore deposit to outsiders, despite decades of interest from Western majors. The offer is the more remarkable for being made to China, a rival for decades with which Russia nearly went to war in the 1960s over a border dispute.

Rosneft confirmed that it has reached a draft agreement to sell a 10 percent stake in Vankor to China.

PIVOT TO ASIA

The Kremlin has made much of its "pivot to Asia", seeking new energy markets since Western governments imposed sanctions on Moscow over the Ukraine crisis last year.

Last year, China overtook Germany as Russia's biggest buyer of crude oil, thanks to Rosneft securing deals to boost supplies via the East Siberia-Pacific Ocean pipeline and another crossing Kazakhstan.

Still, with prices for oil having halved over the past year and natural gas prices also plunging, the Kremlin may find that Beijing is now seeking tough terms for any investment.

Other energy projects that depend on Chinese demand have hit stumbling blocks. Reuters reported on Tuesday that a liquefied natural gas plant on the Pacific Ocean island of Sakhalin, intended to produce fuel for export to Asia, may be delayed by several years.

Last month Reuters reported that a flagship project to build a new pipeline for natural gas from giant new Siberian fields to eastern China may also be delayed.

Vankor is the largest oil discovery in Russia in nearly three decades, key to Russia's policy to find and tap new regions, such as east Siberia, as reserves in west Siberia, the heartland of Russian oil production, are depleting.

"It is a new Kuwait," said Alexander Cherepanov, chief engineer at Rosneft's subsidiary Vankorneft.

Workers pride themselves in being able to operate under extreme conditions.

"Wrenches sometimes break because of the frost," said an oil production operator, Gennady. "In summer, it's fine. You just use a mosquito repellent."

Few inhabited places on earth are as remote. It is an hour by helicopter to the nearest airport, Igarka, and Moscow is nearly 2,800 km (1,750 miles) away.

Deputy Prime Minister Arkady Dvorkovich said last month Russia had overcome a "psychological barrier" and was ready to offer China control over hydrocarbon reserves.

The Energy Ministry predicts the share of oil and oil products sent to Asia will double to 23 percent by 2035, and the East Siberia - Pacific Ocean pipeline will be expanded to 80 million tonnes (1.6 million barrels per day) by 2020.
...

 

[Beast]

Russian has been very positive about Chinese since the western impose sanction on them after the Ukraine crisis. Most Russian media who used to rubbish about China have stopped doing that and post positive news about China.

 

[TaiShang]

Triggers: are China and Russia getting ready to pull them?
Bill Holter
Miles Franklin
Tue, 07 Apr 2015



© AP Photo/Alexander Zemlianichenko
Russia President Vladimir Putin and Chinese President Xi Jinping meet in the Kremlin in Moscow.


The big story regarding the Asian Infrastructure Investment Bank was the application by the Israelis. This came just prior to the deadline and of course at the displeasure once again to Washington. Britain was the early defector followed by Germany, France and Italy. Eyebrows were raised when Saudi Arabia made their announcement but I believe what was truly missed was the application by Taiwan.

If you are old enough to remember, Taiwan was "recognized China" in the eyes of the U.S. Mainland China was "Red" China and not officially recognized by the U.S., the application by Taiwan slipped by with little to no comment. I believe Taiwan's application holds great significance because it means the "elder families" are on board and have given their approval. This is truly big news yet not even spoken of in the West? As I understand it, the application must now be approved, a potential sticking point is the name "Taiwan", this will be very interesting to watch!

Why is the AIIB such a big deal? There are several reasons but I believe the biggest is because it is a very public piece to the bigger picture. Not only has the bank attracted the Asian countries one would expect, it has attracted many Western countries and even those closest to the U.S.. Going one step further, ALL of these applications came against U.S. lobbying and were followed by public rebukes from Washington. This was the first instance where the world collectively (including long time U.S. allies) has expressly denied Washington's wishes.

The AIIB is only one piece to the puzzle. Another is the clearing system set to directly compete with SWIFT. Yet another is the BRICS bank, and let's not forget the Shanghai physical metals exchange set to go live shortly. Can you see the picture these pieces are putting together? China, Russia and the rest of the world could see what is coming but they have not been ready for it...yet. Each one of these pieces amounts to preparation for what is to come. When I say "preparation", much of it has been put into place to buffer the East (and rest of the world) from the financial collapse of the West.

The clearing system for instance will allow and aid trade to continue between nations should the Western financial system close because of insolvencies or bankruptcies. Call it contingency planning and they know what the contingencies are. Another way to look at these plans is to see the U.S. becoming isolated. The U.S. has been trying to isolate Russia and cut them off from liquidity and trade, China (and Russia) have been isolating the U.S. little by little with each new deal signed but have not pulled any triggers along the way.

Until now and until these preparations were made, the East could not afford for the West to fall because they would have been taken down with it. Now, the East has alternatives. There are clearing alternatives, financial ones, new trade deals and routes, and of course even currency alternatives being made ready. The U.S. has relied on the dollar being THE only alternative for the world to clear trade, this monopoly is ending. What I am trying to explain is this, there are now very few preparations left unattended.

When the U.S. originally began pushing economic and financial sanctions on Russia, I immediately was confused. I was confused because in my mind, Russia had the ability to destroy the U.S.. They had all sorts of options, they could sell their Treasury securities and dollars and simply blow up either the gold or silver markets. They could have defaulted on their debts or gone hot in Syria, there were many possibilities but none ever pursued. Don't get me wrong, Russia would have suffered greatly, but, the U.S. has been wobbly enough for a direct effort to have tipped the scales. Again, because they were not ready, no trigger was ever pulled and I believe we have been "carried" like an aging prize fighter, "they" being the Russians and the Chinese.

One last preparation has been longer term, the accumulation of gold. You must ask yourself "why" Russia and China have been accumulating so much gold? The answer is twofold, they understand gold to be money but more importantly they know "where" their purchases were coming from. This preparation involved not only amassing "money" but also bleeding the West of their money (gold).

It is truly scary to see all of the pieces that have been put into place because they are all locked and loaded. Nearly all of the future plans and programs are now in place. The only one we are awaiting is for the Shanghai precious metals exchange to go live which should be very soon. This exchange can either be a trigger or a barometer. Should China decide to revalue and reset the system, they can easily do this by marking gold up using their physical exchange. You can deny this if you will but it is the reality. COMEX and LBMA do not have the inventories to compete with or supply Eastern demand, China will eventually set price whether you want to believe it or not.

This needs a little explanation and can be defined in one word, "arbitrage". Should China decide on a markup phase (they will) for gold, all they need to do is bid their own physical price higher. Should COMEX or LBMA lag behind this move, traders will then have the incentive to purchase Western "paper" and simply demand physical delivery. The delivered gold (while it lasts) will then be sold at the higher price in China and thus a profit for the trader. This is Mother Nature at her finest and China could not be accused of "busting" the Western exchanges purposely because the arbitragers would be doing the dirty work. To put the game in perspective, COMEX registered gold inventory amounts to about 2 days worth of Chinese imports, these shelves are nearly bare in the grand scheme!

They do not even have to act in a direct fashion other than to announce how much gold they have accumulated. China undoubtedly has already accumulated more than 10,000 tons and probably more like the 20-25,000 tons Alisdair McLeod believes. Were China to announce they hold 10,000 tons of gold, what do you believe the market's reaction will be? The price of gold will explode on any announcement such as this because the math and common sense behind it. The world (West) will be slapped in the face that China "believes" in gold. The speculation of a gold backed yuan will run rampant AND the natural question of "where did all this gold come from?" will be asked. As I have mentioned several times before, another tactic could be China simply "bidding" for any and all gold at a specified price using their dollar hoard to effectively "set" the new price. This avenue will only be traveled once it becomes apparent that Western vaults have been emptied.

My point is this, the number of potential triggers is staggering and they don't even necessarily need to be pulled ...but they can now be pulled with less recoil than there would have been previously. The fiat Ponzi scheme will fail on its own and without any help, however, "triggers" can now be pulled because there are alternatives and contingency plans to continue trade, operations, finance and business in general to the exclusion of dollars and specifically the U.S.. Think of it as a giant wall being erected around the United States and the West to contain or limit the damage that spills forth. The final bricks to this wall are being put in place!

 

[SelfServeFive]

The trigger for total economic collapse I think will be a decisive battlefield defeat for USA.

 

[Jlaw]

Hmmm...Jews are onboard. Be on high alert. They already control IMF and world bank. Next AIIB?

 

[TaiShang]

Russia, China, Iran: In sync
Published time: April 16, 2015 13:55

S-300 (RIA Novosti / Alexey Danichev)

Over past decades, the pre-fabricated myth of an elusive “Iranian bomb” was never the real issue between the US and Iran; the issue was how to subdue – or “isolate” - a powerful, independent nation that refused to toe the exceptionalist line.

Now that the “rehabilitation” of Iran – at least for some exceptionalists and their minions - may be imminent, pending a nuclear deal to be clinched in June, various Washington factions still can’t get their act together.

The Pentagon has all but admitted the perennial wet dream of neocons and corporate media remains on the table; the military option.

The US Congress will go no holds barred in trying to scotch the deal. The US Senate Foreign Relations Committee unanimously passed a bill that would give Congress the right to interfere with anything related to the removal of sanctions.

Iranian Foreign Minister Mohammad Javad Zarif faces an even more uphill battle as the “fact sheet” the Obama administration insisted it needed to release to make the case in Washington complicates how the nuclear deal may be received in Iran. To top it off, “fact sheet” or not, the case was not made in Washington after all.

And now the usual suspects – from the State Department to Congress and the Israel lobby – are predictably going bonkers on a demented “Putin selling missiles to the ayatollahs” narrative.

Got “S”, will sell
What Russian President Vladimir Putin has just done is to get back to business as usual; even before sanctions are lifted, he signed a decree lifting Moscow’s own ban on the delivery of the S-300 surface-to-air anti-missile system to Tehran, following an $800 million 2010 contract that was not fulfilled due to relentless US pressure. Tehran expects to receive the S-300 by the end of the year.

Moscow's official line has always been that the arms embargo on Iran must be lifted as soon as a final nuclear deal is clinched. The Obama administration insists that sanctions must be removed gradually. Tehran, from Supreme Leader Ayatollah Khamenei on down, is adamant that sanctions must be lifted“on the day of the deal”, in Khamenei’s words.

The Supreme Leader had added a conciliatory note though, remarking that, “if the other side avoids its ambiguity in the [nuclear] talks, it'll be an experience showing it's possible to negotiate with them on other issues.” That remains a galaxy-sized “if”.

Meanwhile, and in sync, the director-general of Russia’s top weapons exporting company Rosoborobexport, Anatoly Isaykin, confirmed China has just bought S-400 missile defense systems from Russia. Beijing is the first in a long list of foreign buyers – as the Russian defense industry is obliged to give priority on the S-400s to the Russian Defense Ministry

Each S-400 is capable of launching up to 72 missiles, engaging up to 36 targets simultaneously, and shield territory from air strikes, strategic, cruise, tactical and operating tactical ballistic missiles, and medium-range ballistic missiles. It’s been operational since 2007, replacing the S-300 systems now sold to Iran.

The crucial issue is that the S-300s will render Iran’s air defenses virtually secure against anything the Pentagon may throw at them, except fifth-generation stealth fighters. And these – the S-300 and S-400 - are not even Russian state-of-art; that would be the S-500 system, which I’ve referred to here, capable of definitely sealing Russian – and any other - territory from anything the Pentagon may come up with.

Strategically in sync
The simultaneous rolling out of the S-300s and S-400s to Iran and China are yet one more graphic example of the strategic partnership involving the three Eurasian nations that actively contest the hyperpower’s hegemony. They are certainly in sync.

In parallel, discreetly, Moscow has already started, in practice, a $20 billion oil-for-goods swap with Tehran – exchanging grain, equipment and construction materials for up to 500,000 barrels of Iranian crude a day. According to Deputy Foreign Minister Sergei Ryabkov, “this is not banned or limited under the current sanctions regime.”

Ryabkov only stated the obvious; “It takes two to tango. We are ready to provide our services and I am sure they will be pretty advantageous compared to other countries…We never gave up on Iran in a difficult situation...”

Tehran responded in sync, via the Chairman for the Committee for Foreign Policy and National Security of the Islamic Consultative Assembly of Iran, Alaeddin Boroujerdi; Iran is ready to expand cooperation with Russia in all spheres at the highest level. Crucially, “this is also the opinion of our supreme religious leader Ayatollah Ali Khamenei about development of relations with Russia.”

The usual suspects, as usual, are clinging to any argument that “proves” Russia-Iran cooperation is doomed. For instance, “rehabilitated” Iran will doom Russia’s energy industry because of the “serious impact” on the oil market from Iran’s increased supply and competition with gas exporter Gazprom.

Ryabkov dismissed it by going straight to the point; “I am not confident as yet that the Iranian side would be ready to carry out supplies of natural gas from its fields quickly and in large quantities to Europe. This requires infrastructure that is difficult to build.”

This infrastructure upgrade is costly and will take years; it may happen, but with help from – once again - the Russians and the Chinese. Russia will be back in play in full force in Iran’s energy sector, as Gazprom, its oil arm, Gazprom Neft, and Lukoil had to put on hold many projects because of sanctions. Rosatom, for its part, will be able to clinch further contracts at the Bushehr nuclear power plant.

The EU – and especially the US – are betting on Iran’s “rehabilitation” as an economic/political bonanza; the first real benefit would be Tehran becoming a supplier to yet another troublesome ‘Pipelineistan’ gambit, the Trans-Anatolian (TAP) gas pipeline, which may – or may not – be finished by 2018. TAP will supply gas to the EU via Turkey, but it’s still unclear how much gas potential suppliers – Azerbaijan or Iran – are able to commit.

TAP coming online does not mean Gazprom’s exports to the EU must be cut down. In fact, what Russian and Iranian officials have been discussing for a while now is how profitable exporting to the EU may be for both nations. Besides, Russia has still another key ‘Pipelineistan’ card to play – Turkish Stream, which will channel Russian gas to Turkey and Greece.

And yes, Gazprom is getting ready to be a key provider to two essential markets at the same time. Here’s what Gazprom’s CEO Alexei Miller told Rossiya-24: “The resource base of Western Siberia is a resource that is used for delivering gas for exports to Europe. In other words, at this point we are on the cutting edge when actual competitiveness will begin for our energy resources between two mega-markets: Asian and European.”

SWIFT business
Beijing, meanwhile, has also been on the offensive. As a top energy supplier – of both oil and gas - Iran is a matter of Chinese national security. So even with sanctions after sanctions, the US government was always forced to renew waivers for China, as Beijing kept importing energy from Iran at will.

Reuters / Petar Kujundzic

Iran is an absolutely key node of the Chinese-led New Silk Road(s) – be it as part of the land route or as part of the Maritime Silk Road, which will touch the port of Chabahar. And the China-Iran partnership does not span only close ties on energy and trade/commerce; it also includes advanced Chinese defense technology, and Chinese input in Iran’s ballistic missile program.

China created a parallel SWIFT system to pay Iran for energy; Tehran, after the nuclear deal, will be free to access these funds in yuan. Iranian energy executives have already been to Beijing to discuss Chinese investment in the Iranian energy industry. Sinopec and CNPC will be instrumental in developing projects in the South Pars gas fields – the largest in the world - and in the monster Yadavaran and North Azadegan oil fields.

For Iran, all this will happen in parallel with European energy giants investing in liquefied natural gas (LNG) development and technology.

Investing in multiple fronts, China will also be instrumental in its push to finally help complete themuch-troubled Iran-Pakistan (IP) pipeline, which in the future may even include an extension to Xinjiang.

Xi does Tehran
The icing in this vast energy cake is how both Russia and China are deeply committed to integrating Iran into their Eurasian vision. Iran may finally be admitted as a full member of the Shanghai Cooperation Organization (SCO) at the upcoming summer summit in Russia. That implies a full-fledged security/commercial/political partnership involving Russia, China, Iran and most Central Asian’stans’.

Iran is already a founding member of the Chinese-led Asian Infrastructure Investment Bank (AIIB); that means financing for an array of New Silk Road-related projects bound to benefit the Iranian economy. AIIB funding will certainly merge with loans and other assistance for infrastructure development related to the Chinese-established Silk Road Fund.

And last but not least, the China-Iran strategic partnership will be discussed in detail as Chinese President Xi Jinping visits Tehran next month.

It’s easy to remember how Iran was relentlessly derided as “isolated” by the exceptionalist crowd only a few months ago. Yet the fact is it was never isolated – but painstakingly building blocks towards Eurasian integration.

European firms are of course itching to unleash an avalanche of investment in the Iranian market post-sanctions, and most of all the energy giants badly yearn to lessen EU’s dependency on Gazprom. But they’ll be facing formidable competition, as it was up to Moscow and Beijing to identify, a long time ago, which way the wind was blowing; the inevitable (re)emergence of Iran as a key Eurasian power.

 

[terranMarine]

With sanctions being lifted, more energy deals between China and Iran are expected

 

[TaiShang]

Pentagon asks $5.5 bln to protect space satellites from China and Russia
17.04.2015
Pravda.Ru

AP Photo

The Congress was notified by the Pentagon of their intention to spend $5.5 billion by 2020 to protect government satellites.

The Department of Defense also claimed about the need to secure computer networks and ground stations.

The funding should prevent possible attacks from China as well as other countries.

Also read: USA helpless in space without Russia

Deputy assistant defense secretary for space policy Doug Loverro added:

"Those threats continue to mature and our adversaries are not sitting still-let me assure you-neither are we."

Arm suppliers that could probably benefit include such companies as SpaceX, Boeingand Northrop Grumman and Lockheed Martin.

 

[qwerrty]

anti-china propaganda to get more funding. americunt erection cumming up, get ready for big china-bashing flood