HANOI — Vietnam and Russia are working more closely together on gas development projects in the South China Sea as they seek to reduce their dependence on trade with China.
Locked in a bitter territorial dispute with China over islands in the area, Vietnam is trying to insulate itself from economic pressure by its giant neighbor. Russia, whose economy has been pummeled by Western sanctions, is also trying to avoid becoming too dependent on economic ties with China.
But cooperation between Vietnam and Russia to develop resources in the South China Sea could trigger a fierce backlash from Beijing.
Earlier in November, Russian Prime Minister Dmitry Medvedev traveled to Hanoi for talks with his Vietnamese counterpart, Nguyen Xuan Phuc. The two reaffirmed their countries’ commitment to joint natural gas development projects in the South China Sea and other forms of economic cooperation. They also agreed to double bilateral trade to $10 billion by 2020.
At the meeting, local media reports said Phuc took a thinly veiled swipe at China’s naval expansion in the South China Sea, saying countries should try to settle issues peacefully, while respecting international law. Medvedev was reported as supporting Phuc’s call.
Vietnam’s state-owned oil company PetroVietnam and Russian state-controlled natural gas producer Gazprom have agreed to jointly develop gas in fields on the continental shelf in the South China Sea. But the project has been on hold due to strong protests from China, which claims most of the vast body of water and has been building military facilities in the area.