Russia and China are close to sealing an enormous energy contractSubmitted by Calgary4Paul on Sun, 01/12/2014 - 14:57
"Back in 2009, Rosneft and Transneft, Russia’s state-owned oil major and oil pipeline operator, secured a $25bn oil swap deal with the Chinese, marking a major advance in Sino-Russian cooperation.
Less than three months ago, this relationship deepened significantly when Rosneft agreed to double oil supplies to China in a deal valued at a colossal $270bn, which formed part of the Kremlin’s plan to shift its focus away from saturated and crisis-hit European energy markets and towards Asia.
Under the terms of the deal, Rosneft will supply China with an extra 300,000 barrels of crude daily over 25 years, doubling the oil it already sells to the energy-hungry People’s Republic.
The speed of change in the direction of Russia’s crude exports has been stark, with huge volumes switched away from Europe over the last five years — helped by the recently opened ESPO (East Siberia Pacific Ocean) pipeline, which links Russian fields directly to the Chinese markets."