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Chapter 760: Putin’s Proposal (2)

Related officials were sent to Moscow to process the technology transfer of Sukhoi Su fighter jet and the maximum speed cruise missile.

As it was already promised vocally and announced at a public event by Putin, Youngho decided to speed things up.

He would be signing a contract if the license production cost was plausible and send five billion dollars to the Alfa Bank in Moscow.

His fast action was to show a willingness to keep his promise and to earn Putin’s trust.

The Moscow government welcomed the Kazakh officials’ visit and the negotiations for the license production smoothly progressed.

It was China and the U.S. that were most surprised when the word about the Sukhoi Su-57 license production was spread.

The U.S. administration was being troubled by a protest from F-35 producer Lockheed Martin, while Boeing, an Apache helicopter producer, was urging it to approve license production and technology transfer to Kazakhstan so as not to miss its one of the biggest customers.

China almost panicked when it was caught stealing Russian technology and failed to introduce Sukhoi Su, and the technology was transferred to its enemy, Kazakhstan.

This was because not only the gap between China’s air forces and Kazakhstan’s would gradually widen, but no air defense network could stop the cruise missiles, which boasted the highest speed.

Youngho was satisfied watching the movements of the two countries.

The U.S. government would have no choice but to lower its barriers to overseas exports and would have to offer technology transfer to Kazakhstan so that it would use the F-35 as its main fighter jet.

When the license production and technology transfer of the defense equipment was signed, Youngho immediately sent five billion dollars to the Alfa Bank.

Youngho made a bold move as he had no further plans to use Aliyev’s slush funds for the time being.

Putin was exuberated to see the feasible funds being deposited as he had been troubled by foreign exchange problems.

He wanted Youngho to come to Moscow immediately.

As logistics increased dramatically with the opening of the Volga-Baltic Waterway, canal imports also increased, and tourists were visiting Russia despite the winter, so he wanted to keep this atmosphere.

In the case of the Volga-Baltic Waterway, the Russian side’s stake was small, but Russia was encouraged by the increase in the number of tourists using the canal.

In this situation, if the Kazakh royal family launched a big business, the investment atmosphere would revive, and the domestic economy would likely revive as consumption increased due to expectations.

Putin must have been anxious because the Kazakh royal family was not taking any action after depositing the investment money.

For Youngho, he kept his promise for now, so there was no reason to hurry.

He was dragging his feet hoping for Putin to make a counterproposal.

Putin, who was anxious, even mobilized Chairman Yaniv to hurry Youngho’s visit to Moscow.

-Duke, Putin must be fretted a lot over this. He asked me to check your intentions.

Yaniv, who had not called Youngho in a long while, sounded as energetic as always.

His health seemed to have improved as he retired after leaving everything to Sergey and was said to be spending his days on hunting trips.

“You sound great. I heard you left for Kamchatka. When did you come back?”

-I came back because of Putin’s fuss. He is very proud that the atmosphere of Moscow has changed a lot.

“It’s not been a long time since I visited Moscow. How can I go to Moscow again this soon? I have a lot of domestic work to do.”

Youngho made an excuse because he could not ask for something in return bluntly.

-Stop playing a mind game and visit Moscow even for a short time. I think Putin has something in mind.

“Did he mention anything to you?”

-Oh, I’ve retired now and became a countryman. What is he going to tell me? He just asked me to escort you to Russia. He’s dying.

“If he didn’t tell you about it, he must have a business he’s working on in absolute secrecy. It’s intriguing.”

-There were not only one or two projects he wanted to begin but wasn’t able to because of the lack of funds. I think he’s determined to persuade you and start something.

“It’s becoming even more interesting now. I wonder what Putin is up to. Anyway, tell him that I’ll visit Moscow as soon as I finish my domestic work.

-Thank you, Duke. Now I get to save my face in front of Putin.

There was a need to mobilize the intelligence service to figure out what Putin was up to. If it was a business that would help Kazakhstan’s national interest, he would, of course, take the offer.

***

Youngho was discussing this matter with Park Jong-il.

“Well, there are so many unfinished businesses that Putin initiated. The canal and Trans-Siberian Railway cases were accomplished because of our help, and he’s benefiting from our North route project as well.”

“Okay, okay. Just tell me what you found out.”

“According to what our agents found out, Putin’s been wanting to develop the Arctic Circle, but among them, the Yamal Peninsula’s development has not been progressing so well, and it’s troubling Putin. There’s Chinese capital invested in the LNG development in Yamal. Other projects are not so special.”

“Development of the Arctic Circle? He can’t do it alone unless there’s an agreement from the Arctic Council.”

“It’s a region that has nothing to do with the Arctic Council because it’s the permanently frozen region and coastal waters. The problem is that most of the development funds are Chinese capital. If Putin has that in mind, it’s very likely that he’ll propose pipeline construction.”

The Yamal project in the Arctic Circle was an LNG project that China invested about three billion dollars and the project that was supposed to provide 80 percent of the amount of Chinese annual gas use.

As development was already underway, it was not in a situation to keep China out of it, so if Putin envisioned a Russian pipeline as an extension that crossed the continent, there was a possibility that he would propose this to Youngho.

Without pipelines, it had to go through the frozen Arctic Ocean, but if it was transported only by ships, transportation costs would exceed production costs, significantly reducing economic feasibility.

The answer was to build a pipeline across Siberia.

However, pipeline construction across Siberia was a difficult project to push ahead because of the huge cost of construction.

If the construction could be completed safely, the transportation business alone could reap huge profits.

Judging that there would be no particular variable at any rate, Youngho left for Moscow.

When Youngho arrived in Moscow, Putin welcomed him in excitement.

It was a strange experience as Putin was known to maintain his poker face.

“I don’t know what to do as your Excellency greets me this hugely.”

“Isn’t it only natural? You’ve deposited huge funds for investment. If I don’t greet you like this, I’d be blamed.”

“Well, I heard you sought me, so I came over not even finishing up my domestic businesses. What is going on?”

“We have something going on all the time. I only wanted to see you to finish what I started but haven’t been able to complete because now I’ve got the investment funds.”

“Mr. President, I used to be a merchant. I never jump into a business that is not profitable.”

Youngho drew the line first as not to be swayed by Putin’s proposal.

“Huh, what’s gotten into you? I know how bold you are as a businessman. When you’ve deposited that much money, I’m sure you wanted to achieve something in partnership with our country.”

“Hahaha... You leave me no room to back out. All right. I’m very curious to hear about the reason you wanted to see me.”

As soon as Youngho finished talking, Putin’s secretary came in and placed a map on the table. Youngho peeked at the map, and he could see the Arctic Ocean and the Siberian region at a single glance.

As Park Jong-il said, the Yamal region was marked with red and a long line was drawn below it.

He already knew what it was but asked, pretending not to know of anything, “That region is where our country and foreign companies are developing already. Are you planning to develop additional regions?”

It was a map that anyone could tell that indicated a pipeline.

The line was going through China.

“If that was my concern, I wouldn’t have asked you to come.”

Then for the next hour, Putin explained the construction cost of the pipeline and future shipping profits.

Youngho listened to him without showing any interest.

He did not like the fact that Kazakh funds would be used to benefit China. After all, it was a country that battled against Kazakhstan not long ago.

Reading Youngho’s face, Putin carefully put his thoughts into words.

“Your Royal Highness, it’s a great misconception if you think the pipeline only goes to China. We’re planning to connect this to the Far East region along the Trans-Siberian Railway. And even if we send gas to China, wouldn’t it profit your country? I want you to see the big picture here.”

If what Putin said was true, it was a formidable project.

Considering the enormous amount of gas and oil reserved buried in Yamal, the gas line would one day arrive in the Far East area as well.

“Didn’t the Chinese side sound out the construction of the Siberian region’s pipeline?”

“I refused it. The pipeline will cross our land and if the Chinese capital comes in, we’d have to leave its management to China as well. Would you have allowed it?”

It could never happen.

The Chinese government would gradually encroach the nation under the pretext of managing the pipeline. How could he watch that happen?

Youngho was well aware of the cost of accepting Chinese capital.

That was why he bought all the Chinese stakes from the Chinese pipeline constructed in Kazakhstan when the former regime fell after a coup.

Knowing what the Chinese government was doing in other countries, Youngho could never allow something like that.