Russian President Vladimir Putin’s Fifth Term Echoes Absolute Monarchy and Internal Collapse
The state-owned natural gas company, which accounts for 20% of state revenue, is in the red by ¥1.08 trillion. Sudden ouster of the defense minister, lack of human resources, and failure to respond to terrorism. ......
For nearly 20 years, the position of “emperor” as Russia’s supreme leader has finally begun to waver.
Russian President Putin (71) formed his fifth cabinet on May 14th. Just two days later, he visited China, where President Xi Jinping (70), whom he calls a close friend, awaited. This visit reaffirmed their close relationship to the world once again.
However, Defense Ministry Research Director Shinji Hyodo sees this “speedy visit to China” as a sign of President Putin’s anxiety.
“China has become a lifeline for Russia to continue its prolonged war with Ukraine. The reality is that Putin hurriedly visited China to maintain ties and support from Beijing after forming his cabinet.”
Both countries share a border and for strategically important Russia, alliance with China is crucial to avoid being isolated. Economically, China is also a significant partner. Due to economic sanctions from NATO countries, Russia relies on imports from China, including essential electronic components like semiconductors needed for weapon manufacturing. Last year, 89% of imported “dual-use goods” that can be used in both military and civilian sectors, such as drones, came from China.
“Last year, Sino-Russian trade amounted to about 37 trillion yen, accounting for about 30% of Russia’s total trade volume. However, for China, trade with Russia represents only 4% of its total trade, indicating an asymmetrical relationship. Russia’s dependence on China has become increasingly apparent.”
The biggest concern in the current Russian economy is that Gazprom, a state-owned natural gas company that contributes nearly 20% of national revenues, is facing significant losses. This highlights a clear difference in stance between China and Russia.
“The inability to export natural gas to Western countries has had a major impact, with Gazprom reporting a deficit of approximately 1.8 trillion yen in its December financial statements last year. Currently, China is its largest market, but the price at which China purchases natural gas from Russia is discounted by 46% from international standard prices.” (Professor Itsuro Nakamura, Emeritus Professor at Tsukuba University)
