Moscow / Beijing – Russian President Vladimir Putin has signed long-term fuel agreements in the two countries during his visit to China. Russia’s leading fuel company Gazprom reported in this regard. Under the agreement, Russia will supply an additional 10 billion cubic meters (bcm) of natural gas to China for the next 30 years. It is the second long-term fuel deal between the two countries.
Moreover, Russia’s leading fuel company Gazprom and China’s state-fuel corporation, CNPC, signed fuel agreements. As per these agreements, Russia will supply ten bcm of fuel gas to China from an oil field in Siberia. Russia’s fuel supply to the Far East will increase to 48 bcm once the agreement is fully implemented, informed Russian sources. The deal, signed on Friday, mentioned that Euros would be used for fuel transactions.
Furthermore, this is the second long-term fuel deal between Russia and China in the decade. Earlier, in 2014, Russia and China signed a 30-year fuel agreement. According to the agreement, the supply of natural gas to China from Russia’s Power of Siberia pipeline had begun in 2019. Thus, in 2015, there was an agreement to supply fuel to China through Russia’s Western Corridor. But the deal was said to be in a limited form.
However, the new agreement reached on Friday further strengthens fuel cooperation between the two countries. The new deal, making available new avenues for Russia’s natural gas supply, could concern the European countries. Russia supplies more than 30% of Europe’s fuel needs. But in the wake of tensions in Ukraine, the United States has begun making an alternative available to Europe. It is believed that with these options getting activated, European countries will reduce fuel import from Russia, and it would affect Russia. However, Russia’s long-term agreement with China; is believed to have given a check to the US and Europe’s movements.
Meanwhile, it has surfaced that while importing fuel from Russia, China has supported Russia over the Ukraine issue. The joint statement was published after a meeting between Russian President Vladimir Putin and Chinese President Xi Jinping. It states that it opposes NATO’s expansionism into Europe and that NATO should abandon the ideological Cold War approach.