Russia and China signed a $25 billion biggest ever power deal in Beijing on Tuesday that will see China protected oil supplies from Russia for the next 20 years in return for loans.
Russia’s state oil champion Rosneft and pipeline monopoly Transneft signed a long-delayed deal to borrow the money from China Development Bank during talks in Beijing.
The agreement will see Siberian oil going to China. Russian Deputy Prime Minister Igor Sechin told state news channel that,

“We agreed on supplies of 15 million tonnes of oil every year over a period of 20 years.”

The company Transneft would receive $10 billion of the loan and Rosneft the other $15 billion and, in return, will receive 300,000 barrels of oil a day for 20 years. Transneft Vice-President Mikhail Barkov told Reuters,

“The maturity is around 20 years and this credit is linked to supplies. It is a historic event and the start of a big journey.”

China and Japan, two major importers of oil which are measured as key markets for Russia’s East Siberian oilfields. And it is predictable that, after this new agreement the bond between Russia and china will be more tied. Moreover, in recent years China has turned to Russia and some of its former satellites for oil partnerships.

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