Carnegie Moscow Center
Russia should give the green light to the establishment of an SCO Development Bank where China takes dominant positions in the authorized capital and management bodies. In exchange, Moscow could coordinate investment principles on terms that would be most favorable to itself and its partners.
Despite numerous statements declaring Russia’s “pivot to Asia,” the country still faces challenges connecting the goals of the government with the needs of foreign investors.
Decomposition of “Russia” into many players provides clues to some aspects of the relationship between Moscow and Beijing. While the most important decisions are made by Putin himself, the views and interests of other players may influence the final policy.
The danger for the EU in the rapprochement between Russia and China lies in the fortification of the Russian economy against sanctions and in an increased assertiveness for China.
Vladimir Putin’s first visit outside the former Soviet Union since the beginning of the Ukraine crisis is to China. The vector of Russian foreign policy has changed dramatically, and Russia has been seeking ways to strengthen ties with leading non-Western powers.
Since the 1990s, warnings from Russian liberals that Western pressure would push Russia toward China have failed to materialize. Now, however, faced with U.S.-led geopolitical pressure in Eastern Europe and East Asia, Russia and China are likely to cooperate more closely.