| Summary/Abstract |
Russia has for several years been blocking the creation of a Development Bank of the Shanghai Cooperation Organization (SCO) in a bid to softly restrain Chinas financial expansion to Central Asia. Meanwhile, Chinas financial presence in the region is growing for natural reasons, but because of Moscow's policy this is happening in a way that is most disadvantageous for Russia. Central Asian countries borrow money directly from Beijing on its terms. As a result, Chinas credit expansion is not only beyond Russia's control but it is also completely obscured from it. In addition, Moscow's partners are increasingly dissatisfied with its policy that prevents them from borrowing money on more favorable terms and at lower risks.
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