Vladimir Putin is considering selling part of Russia’s corporate crown jewels to China and India as the president struggles to meet spending commitments before his possible re-election bid in less than two years.
The oil price crises of the recent months had been the background for India’s rising demand for oil while China had been guzzling oil since the turn of the century to fuel its growth.
In perspective, India and China have seen exponential growth in oil demand over the past 25 years. Combined, they consume 16 percent of the world’s oil–second only to the U.S. at 20 percent. And analysts expect that by 2040, these two growing economies will double their combined consumption to 30 percent.
However, China has been slowing down in recent months not because their economy is stagnating but due to China’s focus on expanding the services sector and moving the emphasis away from heavy industries.
As it is now, India has already surpassed Japan, in terms of oil consumption, although that doesn’t mean much as Japan may be moving on to alternative energy sources.
What is more interesting is the impact of Russia, China and India being in a partnership over something as crucially important to sustain giant economies – energy.
It would be most interesting to watch how this would change the global landscape as Russia continues to expand its energy ventures in the two economies that have the potential to threaten American economic dominance.