Russia Looks East To China’s Energy Markets

[picapp align=”center” wrap=”false” link=”term=Skovorodino&iid=4660609″ src=”http://view.picapp.com/pictures.photo/image/4660609/russia-link-espo-pipeline/russia-link-espo-pipeline.jpg?size=500&imageId=4660609″ width=”500″ height=”332″ /]

The oil pipeline from Siberia to Skovorodino on the Chinese border that Russia’s prime minister, Vladimir Putin, opened on Sunday, is a further sign of how Russia, like everyone else, is looking east for its trade as China’s economy becomes the epicenter of Asia’s growth. The line is a short 67 kms spur of the 2,750 kms pipe from Taishet in eastern Siberia to Nakhodka on the Sea of Japan that Russia will use to supply up to 1.6 million barrels a day to the growing Asian market once it is completed in 2012. The picture above shows a pumping station at Skovorodino under construction in April.

Last year, Beijing provided Moscow with a $25 billion loan repayable in oil that will let China import 300,000 barrels a day of Russian oil for 20 years from 2011, one of a series of oil-for-loans deals that Beijing has struck. Ten billion dollars of those loans, made via China Development Bank, are to Transneft, the pipeline operator. (The other  $15 billion went to the oil producer Rosneft). That flow of oil will start later this year, once China has built the 930 kms link from its own oil pipeline network in Daqing to the Skovorodino spur.

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Filed under China-Russia, Energy

2 responses to “Russia Looks East To China’s Energy Markets

  1. Pingback: China Looking To Buy More Russian Energy On The Cheap « China Bystander

  2. Pingback: China Bystander

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