RUSSIA, the world’s largest crude producer, is shying away from Europe – as far as crude supplies are concerned – ramping up instead supplies to China. And as the process gains pace, new alliances are springing up on the global energy chessboard while the old ones are being discarded. The small, yet, strategic shift in target markets is providing Moscow not only with an opportunity to end its reliance on weak, saturated and somewhat fragmented European markets, but is also a major source of instant, handy cash at a time of great need. And the swap ensures Beijing long-term supply security. A win-win situation on more than one count!
Russian state-controlled oil company Rosneft will supply China with 365 million tons of oil over 25 years under a $270 billion deal, Igor Sechin, its chief executive said on Friday. A day earlier, Russian President Vladimir Putin said Rosneft planned to sign a deal to provide China with oil worth $60 billion. Russian business daily Vedomosti later said Putin was referring to an advance payment that Rosneft would receive. Continue reading