In October 2009, Russia and China signed multiple oil and gas agreements to strengthen their collaboration in the energy sector
Online PR News – 20-November-2009 – – In October 2009, Russia and China signed multiple oil and gas agreements to strengthen their collaboration in the energy sector. In 2009, they signed oil agreements worth $100 billion. Russia agreed to supply oil to China for 20 years in lieu of a $25 billion loan to OAO Roseneft, a state run oil company and OAO Transneft, a state run pipeline company. Gazprom, the Russian oil and gas giant, aims to build two gas pipelines to deliver 80 billion cubic metres of gas annually to China. This will give Gazprom an opportunity to penetrate into new markets beyond its traditional European markets. China also plans to offer a $10 billion credit to the Shanghai Cooperation Organization (The group comprises of Kazakhstan, Uzbekistan, Kyrgyzstan and Tajikistan, Russia and China). Further, Chinese sovereign wealth fund will invest $300 million in Nobel Holdings Investments (a Russian oil producing company).
With the global financial crisis affecting the Russian oil and gas sector, Chinese oil agreements have revived optimism. To safeguard its economic growth, China has invested in major oil and gas companies worldwide since December 2008, and Russia, with its huge oil and gas reserves, has been an attractive investment destination for Chinese oil and gas companies. By becoming a major supplier to China, Russia plans to reduce its risk of overdependence on oil and gas revenues from Europe.
This analysis was taken from a research paper published by GlobalData, to download the full Research Paper for free, click below:
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