Reports that Russia is uncomfortable with the Shanghai Cooperation Organization (SCO) stepping into banking are nothing new. In particular, Moscow’s quiet efforts to block the creation of an SCO development bank that would funnel largely Chinese credit into Russia’s backyard have featured at the organization’s meetings in recent years.
But a thought-provoking analysis by Alexander Gabuev of the Carnegie Moscow Center, published last week by Russia in Global Affairs, suggests the Kremlin is mistaken, placing fears about appearing to be a junior partner over a sound geopolitical strategy that could give it a measure of control over China’s Central Asia policy.
The SCO – which groups China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan – has tried hard to convince the world it is more than just a club for dictators. China’s push to include economic initiatives on the SCO agenda was a part of this process, Gabuev notes, and a development bank has been on the table at SCO powwows since 2009.
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