Russia signed 20 year contract for crude oil supply to China in exchange for $25bn loan
On February 17th, 2009, Russia signed its biggest ever energy deal, under which its oil companies will receive $25 billion in loans in exchange for 20 years long-term crude supplies to China. Russian delegation currently in China included Deputy Prime Minister Igor Sechin, who oversees the energy sector, Energy Minister Sergei Shmatko, Rosneft President Sergei Bogdanchikov and Transneft President Nikolai Tokarev. The terms of the deal were not disclosed to the press, Transneft and Rosneft immediately declined comments. That was the logic result of series of attempts of Russian government to get loan from China. Oil prices are now in downturn and it’s evident that China under this deal secured for itself long term crude supplies paying lowest ever price.
However it’s not the final accord in the race for Chinese funds. Next day, February 18th, President of Venezuela Hugo Chaves, after winning the right for his lifetime presidential post,
claimed that he would be glad to supply crude oil to China for 200 years. Time will show who will get better deal. Any way China saved huge amount of funds before recession and now squeezes the best out of this advantage.