The Great Decoupling: How the West is Engineering its Own Downfall

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from corbettreport.com: Reports out of Moscow indicate that Russia is on the verge of signing the “holy grail
of gas deals with China. The deal between Russian state-owned gas firm
Gazprom and Beijing would see as much as 38 billion cubic meters of
natural gas per year flowing through the first proposed Russia-China
pipeline by 2018. The agreement has apparently been in the works for
years, but recent events on Moscow’s western flank (read: the Ukrainian
situation) has moved the timetable on the plan up dramatically, with the
last sticking point being the price. If the deal is signed next month
during Putin’s state visit to China, as many analysts are speculating
will happen, it will be a significant event not only economically, but
geopolitically.


Given the fact that Russia, the world’s largest gas producer, and
China, the world’s largest gas consumer, are neighbors it would be
logical to assume that a gas pipeline between the two countries already
exists. But logic and geopolitics seldom mix, and tensions between the
two formerly communist countries (however one characterizes China’s
current political and economic system) have remained ever since border
disputes brought Moscow and Beijing to the brink of war in the 1960s.
Establishing a gas link would thus be a very powerful signal of the
growing understanding between the Russian bear and the Chinese dragon
that their future lies more with each other than it does with a
NATO-backed alliance that is increasingly encircling and isolating them.


Speaking of logic, this latest deal, if it is signed after all, would
only be the logical extension of all of the moves toward cooperation
between Russia, China and their ex-Soviet satellites that we’ve been
seeing in recent years.

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