CPEC amidst changing global and regional scenario.

Byline: Dimitris Symeonidis

In 2015, the Chinese and Pakistani governments announced the inauguration of the China-Pakistan Economic Corridor (CPEC), a strategic program that comprises several connection projects starting from the port city of Gwadar to Kashgar in the Xinjiang province. CPEC has since its inauguration faced tremendous challenges primarily due to the economic reforms (not) taken by Islamabad during its course, resulting in additional mounting debt and leading to the current financial crisis that Pakistan faces. However, contemplating at the same time, the current shift in the global geopolitical order following the Russian invasion of Ukraine, the timing for the completion of the corridor couldn't be better for both countries. Hitherto, it is of utmost importance to point out the myriad opportunities unfolding amidst this geopolitical crisis and the challenges and risks that might stem from the further involvement of China in Pakistani affairs.

A world full of opportunities

Moscow's aggression towards Kyiv has triggered a chain of actions by the EU that led to sanctions involving several sectors where a partnership with Russia is taking place. The last one is bound to include the energy sector, as Russia is the main energy supplier of the Europe an continent. Especially in the gas sector, several EU member states so far have been almost exclusively dependent on imports from Moscow. Brussels and Washington have already come to an agreement to increase the LNG transatlantic trade, there is however skepticism that the USA has the capacity to fill the gap that will be created from the absence of Russian gas in the long term. It is necessary to find other solutions. The TAPI pipeline is perfectly suited to alleviate that pain. Connecting the Galkynysh gas field in Turkmenistan, with abundant resources, the pipeline can convert the Gwadar port into a major LNG hub, with the right investment.

This will be a development of global interest and hence multiple state actors and international institutions should get involved in this process. Oil is also one of the sectors in which Russia has been a key player and one of the biggest suppliers globally. Despite the climate change pledges, there is still great demand for the so-called "black gold", predominantly because of the refining process and the oil-derived products that stem from it. Countries that have not taken part in the sanctions, including South Africa, have much oil refining...

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