At a critical juncture in Argentina’s $40 billion IMF debt talks, President Alberto Fernandez will travel to China on Feb. 2, stopping in Russia en route. The reasons and purpose of the trip are reported by the Argentine news agency Pagina12
The most important political aspect of the trip is joining China’s new Silk Road, a strategic investment project in regional infrastructure promoted by Beijing. The visit to Asia will pave the way for many projects launched after the signing of a bilateral cooperation agreement during the Kirchner period . The main project financed by China will be the construction of the fourth nuclear power plant. Beijing will invest more than $7.9 billion in it, which will be 85% of the total project budget.
The issue of attracting investments from Russia was not officially discussed, however, some facts point to the possibility of its implementation. The last major investment was made at the end of December, when the government won a $864 million tender to supply 70 electric trains from Russia’s TransMashHolding.
It is also known about negotiations with Lukoil , which is interested in the Vaca Muerta shale oil field in Neuquen, Argentina. The company plans to implement a project to develop it jointly with the Argentinean oil and gas company YPF.
As for nuclear energy, Rosatom also plans to take part in the construction of a nuclear power plant in Argentina. The company also plans to conduct research into the peaceful atom.
Argentinian experts compare Russia and China as a South American country, noting that “Russians are more difficult as they are forced to inherit complicated geopolitical relations with the American region and also enter the market with a state-run market economy” . China, on the other hand, has “more capital” and intends to invest in infrastructure and geopolitics much more than Russia.