The other day the Financial Times had a good editorial on Vladimir Putin’s visit to China to sign a plethora of business and energy deals, and naturally, the holy grail of all such diplomacy:  becoming a bigger supplier of natural gas to China’s thirsty industrial capacity from the Kovykta field.  The FT made the point that we’ve argued around here for a long time, that the Sino-Russian friendship is meant to look bigger than it is:  “Certainly, the new Great Game in central Asia does not appear to be going Washington’s way. Yet talk of a confluence of Chinese and Russian interests is overdone.“

In addition to the rivalry trumping the friendship, Russia’s biggest obstacle to scaring the Europeans over sending its gas to the east is the problem of pricing (let’s not forget the foibles of Sechin’s incomprehensible oil deal with the Chinese).  Streetwise Professor has an interesting post breaking down the negotiating points which makes China a pretty tough gas customer:

For an interesting contrast, watch Putin and Russia deal with China. Putin traveled to China to announce big energy deals with great fanfare.  Everything is agreed!  Uhm, except the price.  Details, details.