Russian economic winds blow cold in Chinese border town

AFP, HEIHE: The warmth of the friendship between Chinese President Xi Jinping and Russia’s Vladimir Putin—who meet yesterday for the eighth time in two years—does little to counter the bitter economic winds blowing through their shared border.
In the Chinese city of Heihe, neon-lit high-rises line the banks of the Amur river facing Siberia’s Blagoveshchensk powered by electricity from hydroelectric plants over the border.
Cyrillic signs greet shoppers from the north, but traders say recession in Russia is hitting business.
China has emerged as Russia’s largest trading partner as Moscow turns east, seeking markets in Asia in the face of Western sanctions over Ukraine and low energy prices that have battered its economy.
Beijing sealed a landmark $400 billion gas supply deal with Moscow last year, and in May Russia became China’s biggest source of crude oil for the first time in a decade.
Work started last week on the Chinese section of a 4,000-kilometre gas pipeline from Siberia to Shanghai via Heihe.
Russian Prime Minister Dmitry Medvedev said the project only became possible “due to an extremely high level of truly strategic cooperation between Russia and China”.
In the 1960s, the Chinese and Russian militaries exchanged fire across the Amur—known as the Heilongjiang in China—as tensions between the two peaked.
Now Russians are able to travel to Heihe visa-free in search of bargains, and shoppers cross it by boat, or on foot when it freezes over in winter.
The 30,000-square-metre Free Trade City mall, on an island in the river, sells everything from computers to belts. “If you do not speak Russian, no one will  buy your furs,” Wang Jianxin enunciated in perfect Slavic tones, in front of racks of Chinese-made mink coats.
A taxi driver surnamed Cui added: “For making money, trade with Russia is the main thing.” But at the weekend just a trickle of Russian visitors could be seen passing through Heihe’s border post, while the mall saw just a handful of Russian shoppers. Russia’s economy shrunk by 2.2 per cent year-on-year in the first quarter of this year, and the ruble’s value has almost halved against the yuan in 12 months.
“Everyday I dream that the exchange rate will improve,” said Wang. “Today 1,000 rubles will buy you nothing. That’s why people leave.”

Russian economic winds blow cold in Chinese border town

AFP, HEIHE: The warmth of the friendship between Chinese President Xi Jinping and Russias Vladimir Putinwho meet yesterday for the eighth time in two yearsdoes little to counter the bitter economic winds blowing through their shared border. In the Chinese city of Heihe, neon-lit high-rises line the banks of the Amur river facing Siberias Blagoveshchensk powered by electricity from hydroelectric plants over the border. Cyrillic signs greet shoppers from the north, but traders say recession in Russia is hitting business. China has emerged as Russias largest trading partner as Moscow turns east, seeking markets in Asia in the face of Western sanctions over Ukraine and low energy prices that have battered its economy. Beijing sealed a landmark $400 billion gas supply deal with Moscow last year, and in May Russia became Chinas biggest source of crude oil for the first time in a decade. Work started last week on the Chinese section of a 4,000-kilometre gas pipeline from Siberia to Shanghai via Heihe. Russian Prime Minister Dmitry Medvedev said the project only became possible due to an extremely high level of truly strategic cooperation between Russia and China. In the 1960s, the Chinese and Russian militaries exchanged fire across the Amurknown as the Heilongjiang in Chinaas tensions between the two peaked. Now Russians are able to travel to Heihe visa-free in search of bargains, and shoppers cross it by boat, or on foot when it freezes over in winter. The 30,000-square-metre Free Trade City mall, on an island in the river, sells everything from computers to belts. If you do not speak Russian, no one will buy your furs, Wang Jianxin enunciated in perfect Slavic tones, in front of racks of Chinese-made mink coats. A taxi driver surnamed Cui added: For making money, trade with Russia is the main thing. But at the weekend just a trickle of Russian visitors could be seen passing through Heihes border post, while the mall saw just a handful of Russian shoppers. Russias economy shrunk by 2.2 per cent year-on-year in the first quarter of this year, and the rubles value has almost halved against the yuan in 12 months. Everyday I dream that the exchange rate will improve, said Wang. Today 1,000 rubles will buy you nothing. Thats why people leave.