Russia Monitor is a review of the most important events related to Russian internal and external security, as well as its foreign policies.
Date: 14 February 2022 Author: Grzegorz Kuczyński
Russia, China Extend Gas Cooperation
As Russian President Vladimir Putin went to China to attend the opening of the Winter Olympics, he signed a pile of economic deals with China, also on energy. A gas supply deal was inked, among other contracts.
Gazprom and China National Petroleum Corporation (CNPC) signed a long-term agreement for natural gas to be supplied to China and grow by 10 billion cubic meters, totaling 48 billion cubic meters per year. China will receive extra volumes from Russia’s Far East. The contract was signed for 25 years. The deal is of strategic importance for Gazprom as the firm is hoping to see Chinese gas demand grow by 50 percent by 2030 while that in Europe, Gazprom’s biggest sales market so far, will decrease by more than 5 percent. No details were provided on what field could provide extra deliveries for China. Earlier it was said Gazprom may tap the Yuzhno-Kirinskoye, a field hit by U.S. sanctions, to provide China with gas under a recently signed deal. The field should launch in 2023. Gazprom said the field would see an output of 21 bcm per year. Russian-sourced liquefied natural gas will be delivered to China via the Power of Siberia gas pipeline, operational since 2019. Russia’s Rosneft has signed an $80 billion deal with China’s state-owned CNPC to continue supplying 100 million tons of crude to China by 2033. These will be sent to refineries in northwest China, Rosneft said in a statement. In 2020, the oil firm’s exports eastwards accounted for more than 50 percent of its total export figures. Russia’s new long-term deals with China corroborate the Kremlin’s strategic goal of tightening cooperation with China in all domains possible, ranging from defense to the economy. Beijing is poised to become an alternative to the West as its relations with Russia have soured significantly. It was also about gas supply. Gazprom has for months sent modest gas supplies to Europe although its production stands at a considerable level while the company is increasing export quotas to China. Vladimir Putin and Xi Jinping met in Bejing ahead of the official start of the festivities. Chinese President Xi Jinping urged to step up coordination between Russia and China to protect the security interests of both countries more efficiently, Chinese media reported. The joint statement noted that “friendship between the two states has no limits, there are no ‘forbidden’ areas of cooperation.”
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