Abstract
Vladimir Putin got exactly what he wished for in his visit to Shanghai last week: a marriage agreement between his country, the world’s largest energy exporter, and China, the world’s largest energy importer, in the form of a pipeline that would run $400 billion worth of Russian gas from Siberia to northeastern China over 30 years. After more than a decade of negotiations over price, the two neighbors finally came to a point in which they were equally ready for compromise. Diplomatically embattled, Russia needs a new market for its gas to replace the increasingly shaky European market. Facing the potential for social unrest due to a slowing economy and an escalating environmental crisis China needs a new economic booster and a scalable alternative to its current dependence on coal.  The Sino-Russian gas deal seems like a seminal event in global energy geopolitics and an impressive debut to Putin’s pivot to Asia strategy. It is therefore easy to see why its timing and content would make policymakers on both sides of the Atlantic cringe, especially since it comes just days before the G-7 leaders meet in Brussels to discuss how to isolate Russia. But while there are many reasons for the West to dislike the Sino-Russian gas deal, it may not as bad as it seems. In fact, it may offer some unforeseen benefits – even for the United States.
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