Russia and China signed a new deal that would ensure a steady supply of Russian coal to China over the "coming years." The head of Russia's Energy Ministry, Sergey Mochalnikov, confirmed the signing of the deal, which would see the country deliver more than 100 million tons of coal to China.
The new deal is an expansion of a separate coal deal signed by Russia and India in November last year. Under its deal with India, Russia has committed to supplying the country with more than 40 million tons of coal.
Mochalnikov said in an interview with state-owned news outlets TASS that China will have as much coal as it needs over the coming years. The new deal with China significantly expands Russia's market share in the Asia-Pacific coal market. It is estimated that Russia now holds a 12% market share in the region.
The signing of the lucrative new deal comes as Russia continues to increase its military presence along its border with Ukraine. The nation had conducted military over the weekend, sparking fears that it may be the precursor to a full invasion of Ukraine.
Russia repeatedly stated that it has no intention of invading its neighbor, but military analysts have made the opposite assessment of the situation based on what is happening on the ground. Last week, U.S. President Joe Biden said that he is confident that Russian President Vladimir Putin is going to order an invasion in the coming days or weeks.
In response to the growing military buildup, the U.S. had threatened to impose major economic sanctions against Russia, against Putin, and against certain Russian officials.
Analysts have speculated that China could play a vital role in mitigating the economic impact of any sanctions imposed by the U.S. and its allies if Russia should choose to invade Ukraine. Robert L. Wilkie, former undersecretary of defense for personnel and readiness during the Trump administration, said that with China's backing, Russia would likely be undeterred by economic sanctions.
Apart from the recently signed coal deal, China recently increased its purchase of Russian oil, making the nation its second-largest oil supplier. Wilkie said that even if the U.S. made a move to destabilize Russia's economy and banking systems, China would likely be quick to pick up the slack. He added that China both has the money and the energy resources as its main advantages, which it can use to strong-arm other countries into continuing to do business with it despite Western opposition.
