The Russian Deputy Premier Alexander Novak is looking to have more extensive energy cooperation in the sector with Beijing in this matter.

Russia Wants More Involvement with Beijing

The Russian official made the statement last Tuesday as energy becomes a focus with the Chinese, as shown by increased trade. Russia and China are trying to develop other options than the SWIFT for bilateral payments that are crucial to bypass punitive actions, reported Anadolu.

Both nations are planning more projects that involve the development and production of hardware for energy cooperation.

The Kremlin also expressed that its Chinese partners would invest in building a liquefied natural gas plant in the Leningrad region's Ust-Luga area. Novak mentioned it in the 4th Russian-Chinese Energy Business Forum held in Moscow, noted Reuters.

The Russian Deputy Premier commented that China is one of the leading equipment manufacturers in the oil and gas sector. There already is strong collaboration, mainly on the supply of oil and gas machinery for developments in Russia. A plan to collectively design and deliver hardware for use in expansive energy cooperation for Beijing and Moscow.

Beijing Is a Valued Partner of Moscow

One more point of interest for Moscow is the assistance in acquiring more oil production, also the proposals of Chinese counterparts to be part of developing oil fields in Russia.

Novak affirmed that conversations are continuing about a prospective gas alliance between Russia, Kazakhstan, and Uzbekistan and collaboration in mobility, export markets, and other segments, citing TASS.

Read Also: Mark Zuckerberg Net Worth 2022: How Did Facebook Founder Lose $30 Billion in 1 Day? 

Considering China as a chosen destination provides more chances to broaden bilateral ties, including gas supply and readiness for export to other nations.

Development of Financial Capability

The Russian official clarified that Russia and China are collaborating and exploring ways to cooperate in the finance industry, including projects like opening company accounts in each other's financial institutions to avoid using the SWIFT payment system.

Both nations have stopped using the dollar to pay for gas and instead use yuan and rubles. This de-dollarization will be extended to oil and coal transactions to depower the US dollar.

Recently the bloc and the US tried to put a price cap on Russian oil, but Novak stated these terms would not be accepted no matter how profitable. This frustrated the US and EU having inflation and an energy crisis. He called it unacceptable in principle to make contracts. Furthermore, they will do things according to the market.

Regarding Western-backed sanctions on Russian energy sources, it is the worst action ever taken by the US and its allies. Such a notion of a price cap will have a terrible result because the US and EU want energy prices on their terms, which is ludicrous and unacceptable.

One of these risks is resources, and investments will incur a shortage that will be bad. Furthermore, the sanctions and the attempted price cap on oil will impact the energy industry causing ill effects on power and investment. This includes the oil industry and beyond, which the west is willing to risk for its selfish gains.

Novak summarized that Western nations making their own rules because they want cheap would be very disappointing.

According to Russian Deputy Premier Novak, expansive energy cooperation will give Beijing and Moscow a necessary advantage.

Related Article: Saudi Arabia Looks To Join BRICS After State Visit of South African President