the rise again in europe will take a closer look at e u. plants to provide relief to households by tapping into utility revenues. and we'll visit norway, where a summer drought is having an outside effect on one of europe's biggest energy suppliers. hello and welcome to the show. i'm seeking beardsley in berlin. russian president vladimir putin in china's she, jim pinger, meeting in his back is dan today. ahead of a regional summit touted as a challenge to western global influence. the meeting of the shanghai cooperation organization comes at a crucial time. she who hasn't left china since the beginning of the pandemic wants to shore up his credentials as a global statesman, the head of the communist party congress next month. the russian president, meanwhile, wants to show that his country won't be isolated. internationally. spotlighting is lyrical and economic ties with china, which have lately been close. china accounts for nearly a 5th of russia's foreign trade trade. an energy in particular has grown this year

after russia last western buyers, due to sanctions over the war and ukraine. and between april and july, china has imported. 17 percent more russian crude in imports of liquefied natural gas were up 50 percent and imports of electricity rose by 39 percent of both countries benefit china paying lower prices to russia and russia, replacing some of that revenue. last, when western partners saw alternatives amid sanctions or i for more or less i'm joined by mikhail, could he can. he's a partner in the independent russ energy consulting agency. mikhail, when we look at trade right now, considering this war, is this relationship in which both sides, russia and china, are equals. do i do not think so, or chain or receive is oil, gas and cold from russia and supports or export in

machinery, consumer goods and a lot of other things. and the balance of trade is in favor of russia. if we well focus on the price of energy commodities, but technically speaking, arrested depends on china much more than china depends on the rest. and to what extent can russia replace energy trade with europe through trade with china? this has been the big question now since the war began. it was done possible to increase crude oil deliveries to china because of transportation, the limitations. so the pipeline that goes to china cannot handle more. busy than, well, 1300000 barrels start day. and basically this is the limit in terms of gas supply. china do not need the, an increase of supply from russia. because right now there is just one pipeline

that goes from the site. the area across the board to china in it is go into reach its name, played capacity of 38000000000 cubic meters a year in atlanta at $25.00 only. there are no other ways to increase. guess deliveries from rest of the chain. how badly our sanctions hitting rushes ability to maintain and build out its energy sector. it has of course, ambitions to build up more connections with china as you just finished. mentioned with some pipelines, for example. yes, we're expecting a meeting between the, the leader over china, russia and more gold in america today. and i think they are going to discuss and your pipeline, which are mr. porter suggested a while ago it is called the the power of siberia 2. and it is a to carry

a 50000000000 cubic meters all over us from guess a year across the board at the mongolia and then across one. going to check the problem. there are 2 problems. first, china has always rejected the idea of having a transit country on its way to import energy. as 2nd, it will take about 12 to 15 years to build a pipeline of them capacity from the amount being sold up to check. or i want to leave it their energy analysts because he can thank you very much. and speaking of natural gas, the benchmark price in europe was back on the rise thursday following a forecast for colder temperatures. that's likely to put new pressure on the e. u to speed up plans to tap into energy revenues and the tax profits for some utilities. mission president or underline proposing yesterday that you members cap the revenues for some electricity generators and tax profits for fossil fuel

companies. the 2 measures hope to raise 140000000000 euros. that money in turn would be used to offset higher energy costs faced by consumers. are clements boosters, director of the ego institute munich, and he joins me here for more clemons. obviously, we know that some non gas utilities are prospering right now. as electricity prices rise, they don't have to pay for the gas. is this the right way to go about raising money and helping relieve consumers by tapping into these profits? it's a possible way to redistribute these revenues. i suppose the risk is this has to be designed in a way so that the energy suppliers do not cut their supply. also their energy in countries where they don't pay the tax. so this is tricky. the design is difficult and there is a risk that this tax reduces supply. what we really need is an increase in supply

and this is something redistribution down to achieve. so it's understandable partitions. want to redistribute these profit spots. it's tricky to do this in a way that doesn't undermine supply. this has to be done very carefully. you says that it also is looking into decoupling gas from electricity market market electricity prices. essentially that is, that gas prices tend to be the basis for electricity prices here on the market. how realistic is that? would that not be quite expensive for, for utilities? and for many countries, what i think that's even less realistic in intervening into the market design of electricity markets now is very risky. we are in the middle of this energy crisis and changing the market design now is tricky. and if they do the tax on utilities, they don't need to change the pricing mechanism in the markets because they, in a way they solve the problem. so in a way,

these 2 measures are alternatives. i personally think the market design intervention is even more risky. so it's better to, to take a stab at the redistribution of the profits. but again, this has to be done in a capital way. there are many open questions of these. of a lot of energy is traded in futures markets where it isn't clear which technology will produce the energy. so this is not easy to, to attacks and practice. you're an advocate for extending the lifeline of are the timeline for 3 nuclear reactors here in germany, they're about to go out. at the end of the year. you said it would help overall electricity prices across your can you give us your pitch briefly? yes. in this situation, the key issue is we need to increase energy supply. we need to act of all energy plans. we can cor plans and nuclear plants. according to recent e for estimates are keeping the nuclear plants on the great would reduce energy

prices by 4 percent. that's not very much, but it is a contribution. and at the same time, it's important to activate the co plans. so rather than focusing on redistribution, it is important that politicians focus on raising supply because this is the only sustainable way of bringing prices down in this difficult winter. all right, that's clemons. first, he's the rector of the fo institute in munich. thank you very much. thank you. let's go now to some of the other global business stories making headlines. the rising cost of energy imports have brought japan's trade balance deep into the red countries trade deficit reaching a record 19000000000 euros. that's according to the finance ministry. the resource poor country has now been in the red for just over a year. grant as prime minister has announced the plant a cap, power and gas price increases for household at 15 percent next year. it's

a movement to protect consumers from europe's worst energy crisis and decades. the capital cost the state, 16000000000 euros and prevent household bills for more than doubling. german gas and puerto univ her is edging closer to being nationalized as the german government considers, taking a controlling stake in the company. the report comes as univer seeks, another aid package. the company is germany's largest importer of russian gas and burned through its cash revenues. after moscow slash gas flows to germany, the number of cars in germany has reached the record high. there were 580 passenger cars for every 1000 people last year. that's according to the news figures. 3 quarters of german households own at least one car. country has the use 8 highest car density, luxembourg, italy and poland are the top 3. what a hot dry summer across europe, and that's cut into energy production across the continent. even norway, whose rich energy deposits make it a key supplier for other countries. now faces

a growing problem he'd be correspond. max sander reports moslem, this massive wall of concrete as part of northern, europe's largest hydro power plant. the blood reservoir has the capacity to store enough water to power the nearby city of staffing or for 4 years. but at the moment, the power plant manager, beyond some, vic tells us the water levels here are at the 20 year low. normally these white rocks would be hidden well underneath the surface. the main res, so this, that the war sir, very dress. so moran, the year for the last year was very dry and this winter was quite dry as well. yeah . and you see the results? norway is the largest producer of gas and oil in western europe. in 2021. the sector made up roughly 80000000000 euros and exports, and the country continues to ramp up its production nori itself, however, is driven by renewables. about 90 percent of the electricity production comes from

hydro power, which is becoming less reliable. when going from a situation where we historically, we had over supply, we had excess energy, this is an electricity because and we had this huge hydro power gooey sources. now our electricity demand is increasing and we are expecting that we will not have an excess production already in a few years to come. the government and oslo is working on solutions to protect its citizens and the economy. according to the deputy minister of energy and petroleum, a blank export ban on electricity is off the table. we have been looking into a reducing production from hydro power plants in the short term to same war for, for a long no reason. winter, that'll obviously are through reductions in production in norway increase norwegian

prices in the short term, thus all so at limiting exports in the short term. but, and that is obviously only a in direct effect. we have not been discussing direct exports. so restrictions are from norway, side, with drought and extreme weather patterns being the new normal energy corporation will be critical for norway and it's european partners even long after this crisis has ended. that's it for me. the dw business team find out more online d w dot com slash business watch with

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a deal . we are, your is actually on fire made for mines with this is the w use life from the russia and china valid to deepen their partnership president vladimir putin and teaching ping me for the 1st time since that you credible. they talk about safeguarding their security interests in the region and deepening economic ties.