WSJ: China Gets Upper Hand in Russia Gas Deal

Russia's conflicts on its western frontier are pushing it into the arms of its eastern neighbor. That could finally seal Russia's long-promised natural gas deal with China—but more on China's terms.

Vladimir Putin is due in Beijing this month, and the conversation between the ex-superpower and the budding one is sure to involve energy. The Ukrainian crisis has Europe, which buys 75% of Russia's gas exports, talking loudly about finding new sources. That means Moscow needs to court new buyers. It also needs to find new avenues of capital, considering a net $51 billion—equivalent to 2.5% of GDP—flowed out of the country in the first quarter.

On both counts, China is Russia's best bet. With a goal of doubling its gas market by 2020, China is one of the fastest-growing energy markets in the world. Plus, Beijing offers an alternative to Western funding.
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