Skip to comments.Russia to supply natural gas to China in 30-year deal worth $400 billion, boosting their ties
Posted on 05/21/2014 8:16:34 AM PDT by tcrlaf
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.
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This just untied Putin's hands in dealing with a lot of different issues.
Take special note of THIS:
"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"
Obama's weakness and incompetence has managed to set off an entirely new Cold War.
until Russia gets mad at China
The French think that if Russia takes the French wine from the Chinese, the Chinese will be upset...
We are doomed.
It is the Current Regime now in governance of that territory once known as “the United States of America” that is growing as diplomatically isolated as, well, North Korea, when it comes to having influence anywhere.
A pregnant woman, spouse of an American citizen, is under death sentence in the Sudan for violating shari’a law, specifically apostasy, leaving Islam and becoming Christian.
An American US Marine reservist, that got into Mexico while in possession of a personal firearm, is trapped in the Mexican jail system with no opportunity to seek redress through the US Consul.
Laughable attempt on the part of Eric Holder’s Department of “Just-Us” to bring an indictment against five officers of the People’s Liberation Army, for supposed hacker attacks against US corporations.
No shirt, Shylock.
Payment for the gas will apparently be yuan/Rubles, NOT U.S. Dollars. This is HUGE....
Also note that Russia, which has been buying around 8 tons a month of gold bullion, bought 28 tons last month....
I can’t help but think something BIG is coming, and we aren’t going to like it.
Elections have consequences.
Too bad the Russians would not take US Dollars, think the savings to the Chinese over 30 years with the value of the dollar dropping!
It’s at a low price - Putin caved.
As the article says, they have been negotiating this deal for over a decade.
“Its at a low price - Putin caved.”
We don’t know that. The gas price is “Secret”. Oil is supposedly at “the World Price”.
We do know that the Chinese beat them up on the cost of the new pipelines, though, with Russia having to pay around 2/3rds of the costs.
“The pipeline still has to be built. That means no moolah for the Russians until it’s finished”
The Pipeline to Western China and the ‘Stans is already completed, and flowing. The Eastern Siberia pipeline system is already completed to Vladivostok, with the segment to China under construction now.
The big cost will be the new Central Siberian pipeline system. It means opening up huge parts of Siberia to development, and lots of roads, infrastructure, etc. This will feed directly into the most populous parts of northern China.
Putin scores again!!!!! While our inept punk POTUS can’t even get a critical pipeline built to help our nation.
I'd think this is huge. China doesn't have to worry about what the west thinks about their incursions into Japan, VietNam and just about everywhere else around the globe, since they're quite self-sufficient, now with a steady supply of energy. And Russia is self sufficient, not in debt, has another market for its energy resources, and can move into Russia if necessary ethnic Russian population and manufacturing from hostile areas in the Ukraine.
Meanwhile, the US and EU continue to be over-run by a non-assimilated and fanatical population. If they can't or won't stop the wars they started, they'll destroy our futures in the US and EU.
This is while China and Russia can continue to make nice with South and Central American countries and parts of Africa and the mideast that are ruthless enough to remain civilized.
What am I missing here?
“Putin scores again”
The Chinese are happier than hell about the deal, as well.
This means a greatly reduced dependence on oil from the Middle East, that has to flow through the Malacca bottleneck, and is subject to pricing extremes due to unrest.
For Russia, this means opening up huge, previously unreachable expanses to future development.
The reconstruction and paving of the Trans-Siberian Highway is almost complete, they are already rebuilding the Far East Highway to Magadan, and the Far East Highway Project, running from Vladivostock up Russia’s East Coast to Okhost and Madagan is under development.
Russia is now where we were at around 1955, concerning development and economic growth.
They are undertaking HUGE infrastructure projects to open up the vast, empty parts of the country, and this will have a huge, long-term effect on world economics, I believe.
Meanwhile, it takes us 30 years to build a third Runway at O’Hare airport....
Exactly! Between now and 2018, Russia isn’t going to get the real financial “kick.” I wonder of the Chinese were as stupid as Tymenshenko when she agreed to pay for a specific quantity even if Ukraine did not take it. I doubt it, given how long the Chinese have been dickering.
Other than the PR Putin doesn’t have any chickens to count.
“Russia is now where we were at around 1955, concerning development and economic growth.”
But with modern technology and no crippling unions or greenies.
We will see more and more unprecedented construction projects. Unfortunately, few if any will be in the USA.
Once the pipeline system is in place, the cost of delivery will go down dramatically. The volumes we are talking about here are HUGE.
This is why anybody with a brain knows how important the Keystone Pipeline is. Moving undistilled oil long distance by train is simply STUPID, but Obama’s buddy Buffet is making tons of money off of it.