Conclusion

Hence, the study concludes that the ongoing regional security problems including terrorism, economic woes, and a need for immediate infrastructure, investment and trade, the OBOR initiative offers a quick economic aid. As China is becoming a more significant geopolitical actor in the Middle East, gradually the regional countries will become more dependent on Beijing for their trade and investment relations. China’s increasing economic soft power will in turn ease their dependency on the West and broaden their foreign policy options that may not always align with the United States and European Union interests. This would also reduce Western control over the region, additionally it increases regional countries’ freedom of action to diversify and engage with more economic partners. It would be beneficial if great powers including the Unites States, European Union, China, India, Russia and others also try to cooperate to jointly promote Middle East stability, security and prosperity.

References

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Ehteshami A. and Horesh N. China’s Presence in the Middle East: The Implications of the One Belt, One Road Initiative, 2019, Routledge. (in English)

Frans-Paul van der Putten et al eds. The Geopolitical Relevance of Piraeus and China’s New Silk Road for Southeast Europe and Turkey, Clingendael Report, 2016. P. 27. (in English)

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Macaes B. Belt and Road: A Chinese World Order. Penguin Viking, 2019. 288 р. (in English)

Olimat M. China and the Middle East from Silk Road to Arab Spring, Routledge, 2015. 240 р. (in English)

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Shichor Y. Gains and Losses: Historical Lessons of China’s Middle East Policy for Its OBOR Initiative, Asian Journal of Middle Eastern and Islamic Studies, 2018, Vol. 12 Issue 2. P. 127–141. (in English)

Значение Китайского проекта «Один пояс – один путь» для российской экономики

ДАВЫДЕНКО ЕЛИЗАВЕТА ВАСИЛЬЕВНА

кандидат экономических наук, доцент кафедры международного предпринимательства Санкт-Петербургского государственного университета аэрокосмического приборостроения

davvas@mail.ru

Китайский масштабный проект «Один пояс, один путь», анонсированный в 2013 году, представляет значительный интерес для России. Учитывая санкции, введенные западными странами, и дальнейшее укрепление торгово-экономических и политических отношений со странами Азиатско-Тихоокеанского региона, Россия и Китай укрепляют сотрудничество в рамках данной инициативы. Особенно актуальным и острым в связи с расхождением целей и интересов китайской и российской сторон является вопрос сопряжения проекта «Один пояс, один путь» и Евразийского экономического союза. Как показывает шестилетний опыт реализации инициативы «Один пояс, один путь», реализация проекта идет не гладко и вызывает многочисленные нарекания в адрес Китая из-за навязывания интересов и условий кабалы другим странам, коррупционной составляющей проекта и его непрозрачности. Таким образом, отношение к проекту неоднозначное, и в этих условиях важно выстраивать отношения между Россией и Китаем оптимальным образом для взаимовыгодного сотрудничества. Целью исследования является анализ влияния китайского проекта «Один пояс, один путь» на российскую экономику. Предметом исследования является китайский проект «Один пояс, один путь». Автор приходит к выводу, что в настоящее время российское участие в проекте «Один пояс, один путь» имеет в основном потенциальные преимущества и возможности, а реальные результаты для российской экономики весьма незначительны.

Ключевые слова: Китай, экономика, Евразийский экономический союз, «Один пояс, один путь», Россия.

THE IMPORTANCE OF THE CHINESE PROJECT “ONE BELT – ONE ROAD” FOR THE RUSSIAN ECONOMY

DAVYDENKO ELIZAVETA VASILEVNA

Associate Professor, The department of international entrepreneurship St. Petersburg State university of aerospace instrumentation

davvas@mail.ru

The Chinese large – scale project «One belt – one road» announced in 2013, is of significant interest to Russia. Taking into account the sanctions imposed by Western countries and the further strengthening of trade, economic and political relations with the countries of the Asia-Pacific region, Russia and China are strengthening cooperation within the framework of this initiative. Particularly relevant and acute due to the divergence of goals and interests of the Chinese and Russian sides is a question of interface of the project «One belt – one road» and the Eurasian Economic Union. As the six years’ experience of the «One belt – one road» initiative shows, the implementation of the «One belt – one road» project does not go smoothly and causes numerous criticism of China in imposing interests and conditions of bondage to other countries, the corruption component of the project and its opacity. Thus, the attitude to the project is ambiguous, and in these conditions, it is important to build relations between Russia and China in an optimal way for mutually beneficial cooperation. The aim of the study is to analyze the impact of the Chinese project «One belt – one road» on the Russian economy. The subject of the study is the Chinese project «One belt – one road». The author comes to the conclusion that at present the Russian participation in the project “One belt has mainly potential advantages and possibilities and real results for the Russian economy are very insignificant.

Keywords: China, economy, Eurasian Economic Union, «One belt – one road», Russia.

Introduction

The importance of studying the impact of the Chinese project «One belt – one road» on the Russian economy is beyond doubt. The Chinese project is an open initiative and any country can join it. The project has a huge multiplier effect and is very attractive not only for China, but also for other countries. One of the active participants of the concept of «One belt – one road» is Russia. Nowadays Russia and China are strengthening economic and political cooperation within the framework of this initiative. This article will analyze the impact of the Chinese mega project «One belt – one road» on the Russian economy, highlight its advantages and disadvantages.

Methodology

In the course of the study the author identifying the advantages and disadvantages of the influence of the Chinese project «One belt – one road» on the Russian economy, used a comparative method, analysis and synthesis. The research is based on the materials of Russian and foreign experts and scientists.

Main results

The Chinese project «One belt – one road», combining the «Silk Road Economic belt» and the «Maritime silk road of the XXI century», was first proposed by the President of China – Xi Jinping in 2013. This project is a key element of the general Chinese policy and is aimed at the strengthening China’s position in the international arena, solving China’s domestic economic problems and strengthening regional integration.

This project will lead to significant transformations in the Eurasian space, in particular in the transport and logistics sectors. The project involves the development of cooperation between the countries in five key areas: infrastructure cooperation, political coordination, the growth of mutual trade, strengthening of spiritual unity and free movement of capital³⁰.

According to the project, it is expected that there will be three main routes of the Economic belt: North – from China through Central Asia and Russia to the Europe, Central – from China through the Central and West Asia to the Persian Gulf and the Mediterranean Sea, South – from China to the Southeast and South Asia to the Indian Ocean. Within these areas it is planned to create international corridors: China-Mongolia-Russia, China-Central Asia-West Asia, China-Indochina, China-Pakistan, Bangladesh-India-Myanmar-China.

The Chinese project is an open initiative and any country can join it. In 2019 China has already signed 173 agreements according to the participation in the project with 125 countries and 29 international organizations. It is interesting that over 60 countries joined the project only in 2018. The project has been so deeply integrated into China’s foreign policy that it was mentioned in the Charter of the Communist party of China in 2017³¹.

The scale of the project «One belt – one road» is enormous from the different points of view. For persuasiveness we can give some statistics. Morgan Stanley estimates that by 2027 the project will cost approximately $1.3 trillion. The Chinese banks and financial institutions, mostly state-owned, have invested more than $90 billion in this project. The reason is this project is widely supported by the Chinese government. China’s partners have invested more than $ 40 billion in the Chinese economy. The volume of trade between China and «One belt – one road» participants, which exceeded $6 trillion, is impressive. The trade with project partners increases by an average of 4% per year. Over the six years of the project’s existence it accounted for 27.4% of the Chinese trade in whole³². So, the project has a huge multiplier effect and is very attractive, not only for China, but also for other countries.

One of the active participants of the concept of «One belt – one road» is Russia, supporting it from the very beginning of the project. It is necessary to mention that at present the economic relations between China and Russia are developing very dynamically and positively. The impulse for strengthening cooperation between our countries can be considered the introduction by Western countries sanctions in 2014 against Russia and a turn of Russian foreign economic and political strategy towards the Asia-Pacific region, in particular China.

For optimal cooperation between Russia and China it is important to combine the mutual interests of both countries. The interests of the Russian Federation are related to the deepening of strategic partnership with China, in particular within the framework of the Eurasian economic Union [Efremenko, 2018. P. 48]. China relies on further rapprochement with Russia to ensure stability in the North and a strong strategic rear, investment, trade and economic energy cooperation.

On the 8th May 2015 as part of the institutionalization of cooperation Russia and China signed a Declaration on the interconnection of the Eurasian economic Union and the Silk Road Economic belt. The Declaration identified key directions of contact: investments in industrial cooperation, a development of a common logistics system, a harmonization of foreign trade legislation, a strengthening of the role of joint financial institutions and expansion of foreign exchange cooperation in the field of foreign trade. In 2016 the Memorandum according to the coordination of joint efforts to promote economic and investment cooperation in various international platforms was signed.

In May 2018 another agreement on cooperation in the economic sphere between the Eurasian economic Union and China on trade policy, technical regulation, phytosanitary control was signed. The harmonization of norms and removal of restrictions will certainly give impulse to the development of cooperation. On the 17th October 2018 during the meeting in Beijing it was proposed to accelerate the pairing of projects within the framework of the «One belt initiative”³³ [Efremenko D. 2018]. This idea was also discussed at the fifth Eastern economic forum in 2019³⁴. Thus due to the active political support and stimulation of joint projects there is a significant institutionalization of cooperation between the Eurasian economic Union, the Silk Road Economic belt, the Russian Federation and China [The strategy of «The Economic belt of the silk road» and the role of the Shanghai cooperation organization, 2016. P. 16].

The interaction between the Eurasian economic Union and the «One belt – one road» initiative is primarily considered from the point of view of the development of logistics infrastructure and the creation of transport corridors. The Eurasian economic Union has proposed 38 projects for joint financing with China, including 11 Russian projects³⁵. Thanks to the support of China the construction and development of transport routes connecting Western China and Western Europe and the Northern Sea route are planned.

The implementation of these projects is perfect for China because it will reduce the speed of delivery of goods to the European market (which is especially important because a daily trade volume of China – EU is 1.5 billion euro) and to Russia, as it will help to develop national production and export potential. As to the Russia the transit potential of the TRANS-Siberian railway is not fully used and a participation in the Chinese project will strengthen its role. The most important infrastructure project of fundamental importance for economic partnership between Russia and China is a construction of a railway bridge over the Amur River. The financial operator of this project is the Russian-Chinese investment Fund, formed By the Russian direct investment Fund and China Investment Corporation.

According to the opinion of some experts, the increase in the supply of goods, including transit through the Russian Federation by the help of land transport on the route China-Europe is real, if infrastructure capabilities and increase capacity will be increased. The experts also note two problems. The first one is an imbalance of under loading of trains when they return. The other problem is investment. The participants of the new Silk Road, who take part in the project as transit points, are still afraid to invest in the project, so the main financial burden falls on China. The China’s participation in the Russian projects can be regarded as a «political investment». Despite the loud statements of politicians of the two countries the real results of cooperation between China and Russia in the framework of the project are very modest.

Among project consequences for Russia we can note the following. The participation in the project “One belt – one road” can lead to the integration of the Russian transport system into the transport and logistics network of the Eurasian region, which will open up opportunities for transit and provision of related logistics services and access to the markets of the region³⁶.

Of particular importance within the framework of the project is an interaction of our countries in the field of modernization of poorly developed regions of Siberia and the Far East, which need modern infrastructure and investment. As a concern, we can note a decrease of interest in the TRANS-Siberian and Far Eastern directions. The fact is that the route through Kazakhstan is beneficial for China both in terms of tariff rates and time. At present 10 of the 14 routes China–Russia are passing through Kazakhstan³⁷.

The second advantage is a strengthening of industrial cooperation between the countries, the possibility of forming production clusters. The third plus of the Russian participation in the project “One belt – one road” is a possibility of pairing the Eurasian economic Union and the «One belt – one road» and turning it into a new center of economic and political development at the global level. However, it is worth noting that China is mainly focused on the development of the bilateral relations with each member of the Union individually.

Lately China is accused of opacity and often enslaving terms of agreements, unfair choice of contractors, failure to meet deadlines, untimely provision of promised loans, construction of «white elephants», and damage to the environment. Thus, according to China Global Energy Finance database in 2018 the share of «coal» projects in the project “One belt – one road” was 42%³⁸.

Beijing is also accused of pumping the developing economies involved in the project with loans and debts. The West has even coined a new term – «debt trap diplomacy». In 2019 at the international cooperation forum “One belt – one road” in Beijing the Chinese President promised to become more open to Western investors. China assures the countries that the project has only an economic orientation; however, it is clear for everybody that by increasing economic power the country will gain geopolitical influence³⁹.