China is winning

Young_Chitlin
Young_Chitlin Members Posts: 23,852 ✭✭✭✭✭
gazprom says China, Russia sign 30-year, $400 billion natural gas supply deal

Associated Press By Louise Watt and Vladimir Isachenkov, Associated Press 6 hours ago

SHANGHAI (AP) -- China signed a landmark deal Wednesday to buy Russian natural gas worth about $400 billion, giving a boost to diplomatically isolated President Vladimir Putin and expanding Moscow's ties with Asia.

Price negotiations on the 30-year deal continued into the final hours of a two-day visit by Putin to China, during which both sides had said they hoped to sign an agreement.

Putin was in Shanghai for an Asian security conference where China's president called for a new model of Asian security cooperation based on a regional group that includes Russia and Iran and excludes the United States.

The gas deal gives Moscow an economic boost at a time when Washington and the European Union have imposed visa bans and asset freezes on dozens of Russian officials and several companies over Ukraine. It allows Russia to diversify its markets for gas, which now goes mostly to Europe.

The agreement "opened the door for Russia to enter into Asia's gas market," said Keun-Wook Paik, senior research fellow at the Oxford Institute for Energy Studies.

Politically, the deal has provided "a breathing space for Russia," Paik said. "Russia, and Putin, can demonstrate it's not completely isolated because of the Ukraine crisis. Russia has demonstrated that they have a very reliable strategic partnership with China."

Russia's economy has been bruised by its dispute with the West over Ukraine's tilt toward the European Union, a shift that inflamed Moscow's insecurities about declining influence and sparked its annexation of Crimea in March.

The supplies will help to ease gas shortages in China, the world's second-largest economy, and curb reliance on coal.

The agreement calls for Russian government-controlled Gazprom to supply state-owned China National Petroleum Corp. with 38 billion cubic meters of gas annually, Gazprom spokesman Sergey Kupriyanov told The Associated Press. That would represent about a quarter of China's current annual gas consumption of nearly 150 billion cubic meters.

The contract is worth a total of $400 billion, Gazprom CEO Alexei Miller told Russian news agencies. That figure is greater than the GDP of South Africa. Gas is due to begin flowing to China as early as 2018.

The U.S. treasury secretary, Jacob Lew, appealed to China during a visit last week to avoid taking steps that might offset sanctions. However, American officials have acknowledged China's pressing need for energy.

The contract "particularly important" at a time when Europe has threatened to cut gas imports and reduce its dependence on Russia because of the Ukraine crisis, said Alexander Lukin, a deputy head of the Russian Diplomatic Academy under the country's Foreign Ministry, quoted by the RIA Novosti news agency.

"We will be able to show to Europe that we have other customers," Lukin said.

Alexei Pushkov, a Kremlin ally who is head of the international affairs committee of the Russian parliament's lower house, said on Twitter: "The 30-year gas contract with China is of strategic significance. Obama should give up the policy of isolating Russia: It will not work."

CNPC announced it had signed a deal but it gave no details.

Putin met Tuesday with Chinese President Xi Jinping while gas negotiations continued in private.

The Russian leader's visit is a "major step toward a strategic partnership of the two nations," said Mikhail Margelov, head of the foreign affairs committee in the upper house of the Russian parliament, according to RIA Novosti.

The Ukraine crisis and Western sanctions on Russia had raised expectations Moscow would compromise to secure the gas deal.

The price appears to be closer to the level Russia wanted, according to analyst Xizhou Zhou of IHS Energy. In exchange, the two sides dropped a requirement for prepayment that was a feature of Chinese purchases of Russian oil, he said.

"This higher price level reflects China's willingness to pay more for cleaner fuel," said Zhou in a report.

China and Russia have been negotiating the deal for more than a decade but had been hung up over the gas price.

"Gazprom is under increasing geopolitical and competitive pressure to diversify its market toward the East, while China's gas market remains supply constrained as demand continues to surge," said Zhou.

Russia will invest $55 billion in fulfilling the contract while China will invest $22 billion, Putin told Russian reporters in Shanghai. He said the gas price would be based on a formula linked to that of oil and oil products.

Plans call for building a pipeline to link China's northeast to a line that carries gas from western Siberia to the Pacific port of Vladivostok. The development of a gas center on the Pacific will allow Russia to export to prosperous markets in Japan and South Korea.

___

Isachenkov reported from Moscow.









Comments

  • kingblaze84
    kingblaze84 Members Posts: 14,288 ✭✭✭✭✭
    Russia also wins in that pact.....

    China also wants a SECURITY ALLIANCE with IRAN and RUSSIA.....that will make any possible war with Iran in the future something to not even think about. That alliance would also exclude the United States.The lines are slowly being drawn, I wonder how the warmongers in Washington DC will feel about this...

    http://www.cbsnews.com/news/china-calls-for-new-security-pact-with-russia-iran/

    China calls for new security pact with Russia, Iran


    SHANGHAI -- China's president called Tuesday for the creation of a new Asian structure for security cooperation based on a regional group that includes Russia and Iran and excludes the United States.

    President Xi Jinping spoke at a meeting in Shanghai of the Conference on Interaction and Confidence-building measures in Asia, an obscure group that has taken on significance as Beijing tries to extend its influence and limit the role of the United States, which it sees as a strategic rival.



  • Young_Chitlin
    Young_Chitlin Members Posts: 23,852 ✭✭✭✭✭
  • Shawn_Michaels
    Shawn_Michaels Members Posts: 165 ✭✭✭
    It's time to go back Yisrael and get out of this land of despair. This is the white man fight not our fight. Let the medes, magog, and China do what they gonna do. US being here stops the inevitable.
  • kingblaze84
    kingblaze84 Members Posts: 14,288 ✭✭✭✭✭
    It's time to go back Yisrael and get out of this land of despair. This is the white man fight not our fight. Let the medes, magog, and China do what they gonna do. US being here stops the inevitable.

    What makes you think going to Israel will make things better? Israel is one of the most hated countries in the world, probably more hated then America. Cost of living there is high as hell and according to Donald Sterling, Blacks aren't treated well in Israel....this is the land you want us to go to?
  • CracceR
    CracceR Members Posts: 4,346 ✭✭✭✭✭
    It's time to go back Yisrael and get out of this land of despair. This is the white man fight not our fight. Let the medes, magog, and China do what they gonna do. US being here stops the inevitable.

    ? this is not my fight f u
  • Shawn_Michaels
    Shawn_Michaels Members Posts: 165 ✭✭✭
    It's time to go back Yisrael and get out of this land of despair. This is the white man fight not our fight. Let the medes, magog, and China do what they gonna do. US being here stops the inevitable.

    What makes you think going to Israel will make things better? Israel is one of the most hated countries in the world, probably more hated then America. Cost of living there is high as hell and according to Donald Sterling, Blacks aren't treated well in Israel....this is the land you want us to go to?

    Those ? ain't gonna have a head to be racist with. It's a complete takeover. Yah said we will be back and those liars who call themselves jews will be wiped out. It will be like Canaan again.
  • kingblaze84
    kingblaze84 Members Posts: 14,288 ✭✭✭✭✭
    It's time to go back Yisrael and get out of this land of despair. This is the white man fight not our fight. Let the medes, magog, and China do what they gonna do. US being here stops the inevitable.

    What makes you think going to Israel will make things better? Israel is one of the most hated countries in the world, probably more hated then America. Cost of living there is high as hell and according to Donald Sterling, Blacks aren't treated well in Israel....this is the land you want us to go to?

    Those ? ain't gonna have a head to be racist with. It's a complete takeover. Yah said we will be back and those liars who call themselves jews will be wiped out. It will be like Canaan again.

    Will ? wipe them out or will it be a human thing?
  • zombie
    zombie Members Posts: 13,450 ✭✭✭✭✭
    edited May 2014
    It's time to go back Yisrael and get out of this land of despair. This is the white man fight not our fight. Let the medes, magog, and China do what they gonna do. US being here stops the inevitable.

    Would you shut the ? up with this hebrew israelite ? you ? ? always looking like mad max movie extras. ? out of here with your satan philosophy
  • Shawn_Michaels
    Shawn_Michaels Members Posts: 165 ✭✭✭
    It's time to go back Yisrael and get out of this land of despair. This is the white man fight not our fight. Let the medes, magog, and China do what they gonna do. US being here stops the inevitable.

    What makes you think going to Israel will make things better? Israel is one of the most hated countries in the world, probably more hated then America. Cost of living there is high as hell and according to Donald Sterling, Blacks aren't treated well in Israel....this is the land you want us to go to?

    Those ? ain't gonna have a head to be racist with. It's a complete takeover. Yah said we will be back and those liars who call themselves jews will be wiped out. It will be like Canaan again.

    Will ? wipe them out or will it be a human thing?

    The most high deem us to triumph over them.

    @zombie you have a spirit on you that is quite dark. Get back into your scriptures.
  • zombie
    zombie Members Posts: 13,450 ✭✭✭✭✭
    edited May 2014
    It's time to go back Yisrael and get out of this land of despair. This is the white man fight not our fight. Let the medes, magog, and China do what they gonna do. US being here stops the inevitable.

    What makes you think going to Israel will make things better? Israel is one of the most hated countries in the world, probably more hated then America. Cost of living there is high as hell and according to Donald Sterling, Blacks aren't treated well in Israel....this is the land you want us to go to?

    Those ? ain't gonna have a head to be racist with. It's a complete takeover. Yah said we will be back and those liars who call themselves jews will be wiped out. It will be like Canaan again.

    Will ? wipe them out or will it be a human thing?

    The most high deem us to triumph over them.

    @zombie you have a spirit on you that is quite dark. Get back into your scriptures.

    I don't like the black hebrew israelite ideology. Now get back in the coffin
  • Shawn_Michaels
    Shawn_Michaels Members Posts: 165 ✭✭✭
    A Damn shake but you benjamites need Yahshua to awaken your eyes.
  • Shawn_Michaels
    Shawn_Michaels Members Posts: 165 ✭✭✭
    *shame not shake
  • zombie
    zombie Members Posts: 13,450 ✭✭✭✭✭
    A Damn shake but you benjamites need Yahshua to awaken your eyes.

    There are no benjamites. You afrika bambatta look alike ? need to get that through your planet rocking head.
  • kingblaze84
    kingblaze84 Members Posts: 14,288 ✭✭✭✭✭
    It's time to go back Yisrael and get out of this land of despair. This is the white man fight not our fight. Let the medes, magog, and China do what they gonna do. US being here stops the inevitable.

    What makes you think going to Israel will make things better? Israel is one of the most hated countries in the world, probably more hated then America. Cost of living there is high as hell and according to Donald Sterling, Blacks aren't treated well in Israel....this is the land you want us to go to?

    Those ? ain't gonna have a head to be racist with. It's a complete takeover. Yah said we will be back and those liars who call themselves jews will be wiped out. It will be like Canaan again.

    Will ? wipe them out or will it be a human thing?

    The most high deem us to triumph over them.

    @zombie you have a spirit on you that is quite dark. Get back into your scriptures.

    Well if Blacks should consider going to Israel, it better improve a whole lot more. Cuz nothing there seems like home to me, it seems like a hellhole from everything I read
  • janklow
    janklow Members, Moderators Posts: 8,613 Regulator
    honestly, this is less China winning and Russia losing. Russia's over a barrel here and China's basically soaking them in this deal because they can.
  • kingblaze84
    kingblaze84 Members Posts: 14,288 ✭✭✭✭✭
    edited May 2014
    janklow wrote: »
    honestly, this is less China winning and Russia losing. Russia's over a barrel here and China's basically soaking them in this deal because they can.

    In either case, Russia is winning too because with China doing business with Russia, it is open to a huge market and it blunts the effects of American and EU sanctions. With Iran and China also willing to do a security alliance with Russia, I don't see how Russia is losing much, although strictly speaking in this deal, yeah Russia did lose a bit lol
  • Bazz-B
    Bazz-B Members Posts: 1,185 ✭✭✭✭✭
    @sion what makes you say that?
  • janklow
    janklow Members, Moderators Posts: 8,613 Regulator
    In either case, Russia is winning too because with China doing business with Russia, it is open to a huge market and it blunts the effects of American and EU sanctions. With Iran and China also willing to do a security alliance with Russia, I don't see how Russia is losing much, although strictly speaking in this deal, yeah Russia did lose a bit lol
    Russia having to cut what's very, very likely a less than optimal deal isn't really winning if they're HAVING to do it. it's a help, sure, but...