The Chinese, Xinjiang Production and Construction Corporation, currently have agreements to rent grain and pig farms that will occupy 9.5% of Ukraines arable land in Kharkiv and the centre of Ukraine. This includes a commitment to build local infrastructure. There is also a project with a different firm to invest $10 Bn at Frunze in the Crimea to build a port to receive Chinese goods and distribute them into Europe. The port will also export the grain and pork. A divided Ukraine is NOT in Chinas interests. A Crimea outside the EU is not in Chinas interests. The Chinese are additionally planning a fishing port in the Crimea. In this case, geopolitics are probably not very relevant. The total pledge last December was $18 Bn in 2014 alone. Meanwhile, a week ago today, China started an action in the arbitration court in London to recover $3.5 Bn of grain Ukraine has failed to deliver under contract guaranteed by the Ukrainian government. (Sold to Ethiopia and Libya at a higher price. I guess the relevant oligarch saw the putsch coming). Chinas interest is in a united Ukraine with an EU trade agreement. Putin was worried about competition from EU goods.
Posted on: Fri, 07 Mar 2014 10:23:36 +0000
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