Related Articles
Forward article link
Share PDF with colleagues

Sanctions on Russian energy open the door for China

Western sanctions have tipped the balance of Russia's energy relations with China in Beijing's favour, an advantage that the Chinese side is pressing to win trade deals on its terms and gain direct access to some of Russia's largest oil and gasfields.

In May, the Gazprom and China National Petroleum Corporation (CNPC) finally signed a long-negotiated 30-year gas trade deal that Gazprom's chief executive Alexei Miller valued at $400 billion, but only after Russia appeared to make major concessions on price. The Putin government had wanted China to agree to oil-linked prices similar to those paid by its European customers, while  Beijing wanted to pay less, in line with the tariff it pays for Central Asian gas.  Top dog Details of the pricing have not been disclosed, but it seems clear that  China came out on top. "We believe this is a good deal for PetroChina as this Russian gas price appears to be competitive with its imports from Turkm

Also in this section
Nigeria's election hangs over energy sector
19 April 2018
Africa's biggest economy is growing again. But next year's vote is stalling reform and investment in its crucial energy sector
Syria: ruthless business as usual
18 April 2018
The joint US-UK-French strikes on chemicals targets in Syria won’t affect the war—but they could damage Trump's image in the region
Elections a new rupture point in Venezuela crisis
16 April 2018
A Maduro loss in May's election could be a turning point, but recovery will be lengthy