Problem with site-to-site VPN (OpenVPN VM appliance type)

Hi, I was trying the OpenVPN site-to-site solution (witn a VM appliance). I have 192.168.200.0/24 local network and the same in the cloud. All seems fine, but the tunnel does not connect (see picture).

As per instructions, the cloud and local networks should be the same. But what I do not get, is that the VPN gateway has an IP 192.168.200.1, which is the same as the router on the local site. When the S2S is turned on, I cannot ping it from the recovery server (is it trying to reach it via non-working tunnel ?) and when S2S is turned off, I can ping it with no problem.

Anybody had any experience with this ? I must be doing something wrong...

Denis