Putin’s gas deal urgency displays signs of panic

For the past 10 years, as Russia and China worked towards securing an estimated $400 million (Dh1.47 billion) gas deal, a word that was rarely — if ever — used was “urgent.”

Russia has long been a dominant power in oil and gas exports, so while a deal with China would have been welcomed, the country never urgently needed one. China, too, would have welcomed a gas deal, especially one that would allow its western regions to reduce their dependencies on coal, but only for the right price.

However, with the recent political turmoil in Ukraine, the need for a deal suddenly became urgent, at least at the Russian end. President Vladimir Putin himself went to China reportedly to make sure a deal was signed. While China’s stance was little changed, Russia needed to show that any sanctions imposed against it for its involvement in Ukraine would only be a poison pill for western countries. In the week since the deal was signed, Russian newspapers have run editorials hammering that point home. But Russia’s vociferous denial that sanctions will not have any negative influences borders on panic. Even with the China deal, Russia’s economy, while reviving, would still be hurt by sanctions, especially those against its energy sector. Rather than show Russia’s economy as resilient, Putin’s rush to clinch a deal may have signalled to the West that sanctions are the appropriate weapon of choice.