Russia signs $400bn oil & gas contract with China

[Octavius]

$440bn in a single deal Damn

http://www.bbc.co.uk/news/business-27503017

[Octavius]

http://www.telegraph.co.uk/finance/news ... -deal.html

[Basra-]

Octavia aka gurey25


I think Russia is showing weak signs. China wanted Putin to sign this deal for 10 years but he did not. Now-- China is getting what they always wanted and in CHEAP means since--Russia is tinkering into recession and is desperate.

[Octavius]

Basra you are quite the political analyst! I agree with you. And Russia is probably acting out of desperation.

China is playing a long game to assure its energy security through this quid pro quo deal with Russia. Russia does not want to be entirely dependent on European customers and other smaller customers that can easily be intimidated and coerced into reneging on their contracts to buy from Russia. China represents for Russia a powerful and sustainable customer upon who's custom, and more importantly cash flow, it can depend and who cannot be easily be intimidated and coerced into reneging on their contracts (as many smaller European countries where coerced into not buying oil, gas and armaments from Russia). Conversely, Russia represents for China a strong supplier on who's supply of oil and gas it can depend and a supplier who cannot be easily be intimidated and coerced into reneging on their contracts. But without a doubt China, as the buyer, has greater bargaining power in this exchange.

Several developments over the past few years have resulted in this contract being inked today. China has seen that its supply and investments in oil and gas can be threatened by the American-led Western alliance, as was done in Libya and Iran. In these contexts it was vulnerable to sabotage and interference not due to its own weakness but due to the weakness of its partners, namely Libya and Iran. Similarly, Russia has seen that its customers who buy from it its oil and gas production can and have been coerced into reneging on their agreements to buy from Russia. Russia needs a strong and reliable customer. China needs a strong and reliable supplier.

And it will be interesting to see what the Western response will be to this Eastern alliance. The Americans themselves are playing a clever game, in which the Europeans are caught up. The Americans have been heavily investing in their ability to extract and use their shale gas deposits and they have made great strides in their endeavour. Supply of American gas continues to rise, domestic gas prices have fallen dramatically and as production continues to rise America is looking for customers to whom it can export its newly found bounty. The obvious market for its gas and oil was and is Europe; however Europe had entered into a long term strategic partnership with Russia, who had become its largest supplier of oil and gas and that relationship was being furthered as new pipelines to deliver greater volumes of oil and gas from Russia to Europe were being developed. In order to undermine this relationship, America utilised the expansion of NATO to aggravate Russia by engineering a political and military crisis between Western Europe and Russia.

[Octavius]

Octavia aka gurey25


I think Russia is showing weak signs. China wanted Putin to sign this deal for 10 years but he did not. Now-- China is getting what they always wanted and in CHEAP means since--Russia is tinkering into recession and is desperate.

But the fact that the contract price is low means that China more likely than not will go through with this agreement.

[Basra-]

Octavaia u r absolutely correct. I totally agree. When will Europe come out of the depression or ressession? lOl America can have Europe, and Russia can have China. But China Is funny culprit though-- they make unbountful business with US but they hate the US.

Its like a hate love relationship. Russia was that too, I mean, u could see in the meeting of Obama and Putin in live TV. But now-- the line has been crossed, no love---just hate between. I think we should do the same to China too. But something tells me--China needs us most, and will do anything to behave .

[Octavius]

"This is indeed a historic event for the gas sector of Russia and of the Soviet Union," Mr Putin was reported by Reuters to have said after the deal was signed. "This is the biggest contract in the history of the gas sector of the former USSR." LMAO at Putin still referring to the Soviet Union, talk about flogging a dead horse.

“We started the first page of a big book, a fascinating story of the Russian-Chinese cooperation in the gas industry, and many more essential chapters are yet to be written in it,” said Gazprom’s chairman Alexey Miller after the signing ceremony with Chinese President Xi Jinping in Shanghai.

China needs to find new sources of natural gas to meet its future energy needs and to reduce its dependence on coal as its main fuel for power generation.

[Octavius]

Basrow your intentional misspelling of my nickname is intensely irritating...

[Basra-]

Octa


Sorry darling, I cant help it.

[James Dahl]

Good move on China's part

[Hodan94]

lool u American citizens have been brainwashed by fox news....

this deal is very strategic for Russia... putin aint showing weakness this guy is playing a game,
Europe is in confusion as they don't want Russia to cut off their gas supplies....they have east Ukraine on locks..

but then again lets see what happens.....

[Octavius]

[Octavius]

[gurey25]

Good deal for china but as usual the media i.e western media is ignoring the important factors.
There will be no dollars involved in this deal.
this is spectacularly important news.

[Octavius]