China has Putin where they want him. Needing them desperately.
Deep discount Vlad. Your economy is tanking.
http://www.nytimes.com/2014/05/21/world ... ia.html?hpBEIJING — President Xi Jinping of China and the Russian leader, Vladimir V. Putin, were unable to announce an agreement on a natural gas deal on Tuesday, despite high expectations that mutual political interests would help finally push through the project.
Instead, commercial concerns continued to dominate — specifically, the price of the gas, which China and Russia have been haggling over for nearly a decade. After the meeting between the two leaders, Mr. Putin’s spokesman, Dmitri S. Peskov, said that talks were continuing.
According to Xinhua, the Chinese state news agency, after meeting Mr. Xi in Shanghai, Mr. Putin said, “I’m glad to be informed that the two sides have made significant progress in the price negotiation of the east route of the natural gas project.”
Mr. Putin had also been expected to agree to China’s demands on price in part because of the weak Russian economy. The International Monetary Fund projects Russia’s economic growth in 2014 will be 0.2 percent.
But China was in no hurry to sign a deal, said Shoichi Itoh, a senior analyst at the Institute of Energy Economics in Tokyo. “China already has enough gas from Central Asia, and now Myanmar, until the mid-2020s,” he said. “Unless Russia made a compromise on price, China has no reason to sign it.”
In recent weeks Mr. Putin has stressed repeatedly that Russia sees its economic future with China, which is on a trajectory to surpass the United States as the leading global economic power. Mr. Putin’s emphasis on China also is consistent with his conservative nationalist ideology, emphasizing family values and patriotism and criticizing what he views as the West’s moral decadence.