Chapter 313 Buying Meat and Bones (Catching Insects): If you want honey, you have to put up with the bees.

It is only natural that the Mitsui Group wants to establish a joint venture oil refinery on Sakhalin Island.

Following the bursting of the bubble economy, major Japanese conglomerates were in a period of stagnation, and the Mitsui Group needed to expand its overseas energy business to ensure resource supply.

Moreover, against the backdrop of the US-Japan-Russia rivalry, Japan is also attempting to intervene in Russia's Far East affairs through economic cooperation.

So, is Wuzhou Petroleum Company willing to accept the olive branch extended by the other party?

certainly!

Who in the world would complain about having too much money?

Oil is liquid black gold, but selling only crude oil would be a waste of its resources.

Wuzhou Company needs Mitsui's technology to process oil and increase the added value of its products.

Moreover, joint ventures have an advantage that is difficult to achieve with general business methods: the products of joint venture factories can quickly penetrate the original markets of the investors.

Building an oil refinery and expanding the product reach to Japan, South Korea, and Northeast China aligns with Wuzhou's goal of "controlling the downstream of the industrial chain."

Furthermore, introducing Japanese capital can balance relations between China, Russia, and the United States, avoiding over-reliance on a single partner and thus losing dominance.

As for their joint venture to build an oil refinery on Sakhalin Island, would the Russian Federation government agree to it?

Well, the emotions will likely be quite mixed. But under the current circumstances, Russia urgently needs to attract foreign investment to join its energy development efforts.

Therefore, if this refinery is built, Mitsui will be able to obtain a stable supply of crude oil and market access, Wuzhou will upgrade its industrial level, and Russia will also attract foreign investment to develop the Far East.

A win-win-win solution is worth discussing.

Ivanov, eager to try, volunteered: "Your Majesty, I'll go back to Sakhalin Island right away."

Unfortunately, Wang Xiao's heart was colder than the icebergs of the Sea of ​​Okhotsk, and he refused bluntly: "No, you have to stay in Moscow and watch over the Gir factory."

Ivanov let out a wail.

He had no desire to be all alone in damned Moscow.

Just thinking about the ZIL truck factory makes Moscow summers seem gloomy.

It's terrible, absolutely terrible.

Ivanov declared that this was one of the top 10 worst factories he had ever seen—no, the top 1.

Because the other bad factories had already completely shut down, and no one was trying to save them.

It's completely unnecessary.

I have no money.

Hyperinflation caused Gill Trucks' cash flow to dry up. Government orders, which the planned economy relied on—such as military trucks and cars for leaders—saw a sharp drop in demand due to the economic recession. Imported vehicles further intensified competition in the civilian market, leading to a further decrease in orders, thus creating a vicious cycle.

There is no one.

The loss of skilled workers is severe, and factories that can't pay wages aren't worth their continued efforts. Many have switched to other professions or started small businesses. Those who remain are also becoming increasingly passive and unproductive.

There are no supporting accessories.

Of the 7,000 supporting enterprises established during the Soviet era, 40% went bankrupt after 1992. Of the 5,600 parts in the classic ZIL-130 truck, 23% had to be imported.

Product performance was lagging behind, production processes were stagnant, and technological iterations were lacking—the world calendar had reached 1994, but the technology of the GIL Truck Factory seemed to be stuck in the 1960s.

If a factory like this doesn't have a stockpile of products, who will? Ivanov couldn't find any reason to save it.

He complained bitterly: "It produces military trucks, and the entire management team seems to have crawled out of a graveyard. They have absolutely no idea what civilian market demand is. Japanese and German cars offer better value for money than it. If I were to buy a car, I wouldn't buy it."

He was incredibly unlucky, running into a damned Tsar who not only forced him to spend a fortune on road repairs but also dragged him into the Gir truck factory.

Haha, outsiders would say he got a huge bargain, acquiring the famous Gear truck factory for almost nothing.

In reality, it's a huge pit, like a black hole, a bottomless pit.

It really made the Dnipro Tractor Plant look lovely.

Ivanov complained incessantly, “What kind of officials have we Russians put in positions of power?”

Wang Xiao laughed and said, "But you have to admit, the people of Muscovites will welcome this mayor."

This is terrible!

Ivanov retorted defiantly, "That's right, we Russians love the Tsar."

“No, no, no, that’s not what I meant,” Wang Xiao explained. “He extorted money from businessmen, forcing them to build hospitals and roads, while the real beneficiaries were the citizens of Moscow.”

As for whether he had the power to seek rent, abuse public power for private gain, or engage in corruption during this process, the people of Muscovites, or rather, ordinary people throughout history and across the world, don't really care that much.

People are often only concerned with the interests that are immediately visible.

As for how unfortunate the extorted merchants were, the citizens of Moscow would care even less.

Merchants, throughout history and across the world, have always been natural bloodsuckers, inherently carrying their own original sin.

Even if he or she is charitable and has never done anything immoral, it is only natural for him or her to give more money to society, or even all of it, if he or she has money.

The window was open, and the June night wind in Moscow carried the chill of dew.

Ivanov felt a chill run through him, even a sense of despair creeping in: "Yes, this is Russia's economic reform. The government is powerless to organize production and business, yet it relies on businessmen while treating them like criminals. Therefore, it can never retain people."

Instead of warming his heart, Wang Xiao cruelly tore away the last veil.

"But Moscow isn't afraid. There's only one Moscow in the entire Russian Federation, and everyone wants to come to Moscow. Everyone flocks to Moscow. As long as there are people, there's a market."

She exclaimed, "The mayor is truly brilliant."

He forcibly linked Moscow's businessmen with infrastructure development.

He clearly understood that rather than relying on government agencies that took 18 months to process applications for an existing oil pipeline, it was better to let businessmen, who were hundreds or thousands of times more efficient than them, handle the infrastructure projects.

Once a place has its infrastructure built up, and it has no shortage of population and is attractive to outsiders, its prosperity is simply a matter of course.

Perhaps, under such repressive policies, Moscow will actually become more economically prosperous than St. Petersburg.

The problem lies in the fact that various regions of the Russian Federation lack rulers capable of controlling the overall situation.

Ivanov retorted indignantly, "But that's not how business is done. It's an equal exchange; he has to make sure the merchants get a good deal. Otherwise, why should we be the ones getting ripped off?"

From hospitals to road construction to the Gill truck factory, what benefits did they get?

Wang Xiao laughed: "Dear Ivanov, have you forgotten Chechnya?"

Ivanov subconsciously thought of the Chechens who were entrenched around the container market, whom he wanted to expel through the Moscow government.

The words were on the tip of his tongue when he suddenly remembered what Wang Xiao meant by Chechnya.

War, the war cloud looming over Moscow, the Russian government's war in Chechnya.

Yes, he and Wang Xiao discussed this topic.

But as natives, it's perfectly normal to forget what might happen in the future.

At this moment, the sudden thought of Chechnya made him feel excited.

The main reason why the Gill truck factory is now on its last legs is because it has lost orders from the military.

But if war breaks out, the current hot potato of inventory can be turned into scarce resources.

Yes, by the 1990s, ABS and power steering were common features in trucks worldwide, but ZIL trucks did not have these features across their entire lineup.

However, its proud off-road capabilities, such as the ZIL-131's 6x6 drive, are enough to make it stand out on the battlefield.

Ivanov sighed. Although he felt he was being rather unethical, from a businessman's perspective, he still had to say that the Chechen war could not end too quickly.

We'll have to wait until he revives the Jill Trucks factory.

Wang Xiao encouraged him further: "If the Kremlin's promised loan doesn't materialize, then our mayor should help polish Moscow's industrial jewel."

Ivanov slumped in the wicker chair, as if he had no bones, and tried again: "Your Majesty, can't we go back to Sakhalin Island first? We can fight side by side for now."

“No.” Wang Xiao said calmly and rationally, “Negotiations with the Japanese cannot be completed overnight. If I take the lead and suffer a loss, you can renege on my promises and the cooperation can be terminated immediately.”

Isn't that a bit of a rip-off? Of course, it's normal to work on contracts in business.

But Ivanov didn't cooperate and blurted out, "Your Majesty, I will never say no to anything you approve of."

Wang Xiao was completely speechless and directly used an imperative sentence: "No, as my partner, you have to say no at crucial moments."

She ordered Ivanov, who was still trying to whine, "not to disrupt the pace of the negotiations."

Anyone who dares to disrupt her rhythm, she'll kill them!

The helicopter rotor cut through the thick fog over the Sea of ​​Okhotsk, and even the combined June sunshine and sea breeze could not easily disperse it.

Wang Xiao's fingertips caressed the conch fossil pendant—the Sea of ​​Okhotsk does not produce pearls, but its sedimentary layers are rich in ancient fossils.

This conch fossil retains its complete spiral structure, and its hard texture always makes her more determined.

Taketa Watanabe, head of Mitsui Oil's East Asia business, was already waiting on the deck.

He wore a dark gray trench coat over a shirt, without a tie, and a tiny Mitsui crest pinned to his collar. Half of a white handkerchief, folded into a standard "mountain shape," peeked out from his right lapel pocket—a tradition of Osaka trading companies.

Taketa Watanabe stepped forward to shake hands, bowed 15 degrees, and greeted Wang Xiao in Japanese-accented English with a hint of flattery: "Miss Wang, you step off the plane like a sea queen inspecting your territorial waters."

Wang Xiao smiled and grasped his hand, but shook her head: "No, in our China, there is only one Queen of the Ocean—Mazu."

Watanabe Taketa didn't know who Mazu was, but that didn't stop him from making a casual half-joking remark: "Really? I thought you chose to meet me at sea because this is your territory, Miss Wang."

The sea breeze tousled Wang Xiao's hair. She tucked the stray strands behind her ear, shook her head, and said, "On the contrary, it is at sea that people truly feel how insignificant they are."

She pointed to the ocean-going vessel ahead, "Look, even a giant ship like this has to obey the sea's commands."

Taketa Watanabe sighed as if he understood the sentiment: "Yes, the fog on Sakhalin Island is more unpredictable than the snow on Hokkaido."

He gazed into the mist ahead and abruptly spoke, "I heard that your military diesel fuel order requires a cetane number of no less than 55?"

Wang Xiao raised an eyebrow, referring to the T-80UD tank engine standard corresponding to a cetane number of 55.

She gazed at the drilling platform, which was faintly visible in the distance, where crude oil was being pumped into the floating storage tank at a rate of 50,000 barrels per day.

So she offered a sincere compliment: "Mr. Watanabe's intelligence network is even more efficient than Russia's customs."

“Mitsui’s office in Vladivostok has been operating for thirty years.”

Taketa Watanabe's voice was calm and steady, revealing his confidence.

He took out a technical white paper with a gold-embossed cover from his briefcase. “Our hydrocracking technology can reduce the sulfur content of high-sulfur crude oil to below 0.05%, while producing base oil that meets API Group II standards.”

Wang Xiao did not take the white paper from his hand. She could understand the English version, but she disdained it.

“JX Minerals & Petrochemicals uses fourth-generation heterogeneous dewaxing technology in its Singapore refinery.” She tapped the white paper in the air with her fingertips. “Your company intends to exchange 1990-era technology for 49% equity. This valuation probably needs to be recalculated.”

The sea breeze lifted Taketa Watanabe's shirt collar, revealing a burn scar on his collarbone—a memento of the Mitsui oil field accident in Iran in 1989.

From then on, he, who came from an ordinary family, broke through the strict promotion system of Japanese companies and gradually became the head of the East Asia Business Division.

He stared into Wang Xiao's eyes and suddenly said softly, "Miss Wang should know that our technical team is helping the Russian Ministry of Defense upgrade the refining equipment at the Tyumen oil field."

A single sentence turned the sea ice in the Sea of ​​Okhotsk into an ice spike, which pierced directly into Wang Xiao's spine.

The Japanese are baring their fangs, revealing their hidden strength.

Mitsui has connections in Moscow, and may even have spies within the Ministry of Defense. Russia's internal workings, including military contracts, are no secret to it.

Mitsui might even know when the federal government will launch a war against Chechnya.

Wang Xiao calmly flipped through the financial statements, deliberately revealing the red annotation on the shipping costs in the Sea of ​​Okhotsk: "Your real estate investment in Southeast Asia has resulted in a loss of 12 billion yen, and the maintenance fees for the oil storage tanks have been overdue for two periods—this makes us doubt the stability of your subsequent technical support."

Watanabe Taketa's pupils contracted slightly; this was not the kind of straightforward corporate leader he was familiar with from a socialist country.

However, just as Mitsui can find out about others, others can also investigate Mitsui's situation.

So Watanabe Taketa simply straightened up and looked Wang Xiao straight in the eye.

His trench coat hem brushed against a Japanese wooden crate on the deck that read "Optical equipment, handle with care," with a Russian "Extra caution" sticker on the corner of the crate.

“Mitsui’s Iwakuni refinery’s fourth-generation process can reduce sulfur content to 0.03%, but the technology licensing fee needs to be offset by crude oil – $1.50 per barrel for the first three years.”

Wang Xiao shook his head and said bluntly, "Mr. Watanabe, this is the most basic thing you should do. I can't feel Mitsui's sincerity."

The sea breeze brought the coolness of the mist and the strong salty smell, seemingly reminding the people on deck that they were merely guests on the ocean.

Wang Xiao added, "If Mitsui doesn't show enough sincerity, then, Mr. Watanabe, I think we don't need to waste each other's time."

"Process parameters".

Taketa Watanabe opened his Toshiba laptop, and the screen switched to a live feed—the hydrogenation reactor at the Iwakuni refinery in Yamaguchi Prefecture was operating, and the data was being transmitted daily to the Tokyo headquarters via a dedicated NTT satellite line.

He believed he had already given businessmen from developing countries a small shock, so he directly laid down his final bargaining chip: "We will provide real-time updates on process parameters and allow your engineers to be stationed at the factory for three days each month."

Everyone knew perfectly well that the only reason this negotiation could continue was because of Mitsui's technology.

If it weren't for his technical skills, Wang Xiao wouldn't have needed to show up at all.

Wang Xiao was slightly surprised that Watanabe Taketa agreed so quickly.

It is obvious that Mitsui Group is eager to lock in Sakhalin crude oil.

It seems that even though international oil prices are still sluggish, the energy war is still fierce.

Securing Sakhalin crude oil would not only balance Tokyo Electric Power's energy deficit for the Mitsui Group and the Japanese government behind it, but also hedge against Chevron's oil and gas investments in Kazakhstan.

In this situation, Wang Xiao certainly wouldn't stop while he was ahead. Instead, he pressed his advantage: "The key equipment was jointly manufactured by China First Heavy Industries and Japan Steel Works, with a supervision team of three people each from China, Russia, and Japan."

Watanabe Taketa pursed his lips: "Miss, this request seems excessive."

Huaxia First Heavy Industries achieved a technological breakthrough in the localization of hydrogenation reactors last year.

If it were to participate in joint manufacturing, China would make leaps and bounds in this area.

“International cooperation.” Wang Xiao’s fingers rubbed the pendant. “Of course, we can’t exclude any party.”

Sunlight shone through the clouds, reflecting a dazzling light onto her pendant.

Her voice was as firm as a pendant: "As you probably know, I also have American oil companies waiting to negotiate. As you can see, they are responsible for the development of the entire oil and gas field project. We have a basis for cooperation between us."

Watanabe Taketa's lips tightened even more. Whether it was an act or a sign of intense inner struggle, he certainly looked like he was in agony.

The sea breeze made the flagpole sway precariously, and the flag fluttered in the wind.

It seemed like an eternity before Watanabe Taketa finally made up his mind: "Alright, Miss, I agree."

He relaxed his shoulders, wanting to get to the heart of the matter, "So, let's talk about equity."

“No rush.” Wang Xiao smiled and made another request, “Mr. Watanabe, I hope that the cooperation between Wuzhou and Mitsui can be further strengthened.”

Watanabe Taketa's face showed a slight hint of polite curiosity: "Miss Wang, may I ask what aspect of the further cooperation you mentioned is being referred to?"

“A truck factory.” Wang Xiao smiled. “With Mr. Watanabe’s intelligence network, he should know that the reason my partner did not attend today’s negotiations is because he took over a truck factory in Moscow. We need Mitsui’s technology to help transform the truck factory.”

Her bluntness prompted Watanabe to instinctively refuse: "No, Miss Wang, we're talking about the oil refinery."

Has the Girr truck factory never considered seeking foreign investment and introducing foreign technology?

Of course not.

In fact, besides German automakers, they also approached Japanese automakers, but no one was willing to take on this hot potato.

The existing value is too low, the cost of modification and upgrading is too high, and more than one Russian car factory is seeking technical cooperation.

Wang Xiao shook his head: "No, Mr. Watanabe, you must understand, in Russia, when you do business, you have to pay for the meat along with the bones. You should be glad—"

She pointed to herself, "Mr. Ivanov and I just run a wholesale market in Moscow. We're responsible for building hospitals, repairing roads, and taking over the ZIL truck factory. Now—"

She then pointed to Taketa Watanabe, saying, "As our new partner, Mitsui only needs to provide the technology. What a worthwhile deal!"

The sound of a ship's horn could be heard in the distance.

Taketa Watanabe closed his notebook and sighed, “Miss Wang, you should understand that Jill Truck Factory is not a good choice for you to enter the car manufacturing industry.”

“No.” Wang Xiao shook his head and smiled. “On the contrary, the ZIL truck factory is the most suitable choice for us. If we do a good job at the ZIL truck factory, it will be equivalent to receiving an invitation from Moscow.”

She made a pointed remark, “Our mayor of Moscow is a close ally of the president. There’s a Russian proverb: ‘Хочешьмёда—терпипчёл,’ meaning if you want honey, you have to put up with the bees.”

The sea breeze was too strong, and Watanabe Taketa seemed unable to bear it, squinting slightly: "So, Miss King, what do you need?"

Wang Xiao bluntly stated, "For the diesel engine upgrade, I need Mitsui's JX-900 hydrocracking technology to produce low-sulfur diesel, which will be compatible with the ZIL-508.10 engine, reducing fuel consumption from 30L/100km to 26L/100km. Hmm, close to the level of Isuzu in Japan."

Actually, she wants more; 22L/100km is her goal. However, 22L requires turbocharging, a technology that ZIL has not yet mastered.

Technological improvements require a gradual approach; they cannot swallow an elephant whole.

Taketa Watanabe almost laughed; Suzuki Isuzu trucks had practically swept through the Russian mid-to-low-end truck market.

She really knows how to immediately identify her competitors the moment she opens her mouth.

"Anything else?"

Wang Xiao didn't feel greedy at all and continued to make demands: "We also need economy light trucks. Jier Truck Factory needs an economy light truck production line."

She looked pained. "After all, we can't keep fighting forever; people die in war."

Watanabe Taketa nodded slightly: "Okay, Miss Wang, I understand what you mean. I'm sorry, I can't give a definite answer right now. After all, I didn't know there was a Jill truck factory before this."

Wang Xiao smiled broadly: "Yes, after all, before today, I didn't know that Mitsui was a business partner worth cooperating with in depth."

She extended her hand and shook hands with the other person, saying, "I look forward to signing our names on the contract as soon as possible."

She looked up at the sun breaking through the clouds and driving away the thick fog. "After all, summer in Sakhalin is so beautiful; it's perfect for a lovely vacation."

The sea broke free from the thick fog, and sunlight scattered like shattered gold.

Anyone who sees this can't help but say that summer on Sakhalin Island is so charming and lovely.

————————

Just take a look, I don't have time to correct the typos. [Melted]