RIA Novosti: Risks Behind Russia’s Gas Supplies to China via Western Route

Russia has to choose between environmental and technological risks in planning the western route for gas supplies to China, analysts told RIA Novosti.

"Russia's border with China in this area is very small [a few tens of kilometers]. The conditions for laying a pipeline aren’t the best there due to the specifics of the terrain. For this reason, Mongolia and Kazakhstan may be considered a more fitting option for this route... Altai [pipeline]has not been agreed yet, so the route may change," Energy Development Fund director Sergey Pikin said.

Routing through Kazakhstan or Mongolia can help solve a number of technological problems and eliminate the environmental risks of supply, but will nevertheless introduce a third party, which has the potential to carry hidden economic risks, judging from the current situation with Ukraine.

"A mediator in transit creates additional problems. If we look at the situation in the West, Russia is actively trying toget rid of the transit countries, like Gazprom with his South Stream. I think Russia will take a more cautiousapproach here … In any case, I would warn against additional mediators," Alfa-Bank senior analyst Alexander Kornilov said.
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