Russia's Putin signs 30 year gas deal with China

BBC News Article

The deal between Russia's Gazprom and China National Petroleum Corp (CNPC) has been 10 years in the making. No official price has been given but it estimated to be worth over $400bn.

Russia has been keen to find an alternative energy market for its gas as it faces the possibility of European sanctions over the crisis in Ukraine.

Gazprom shares rose 2% on the news.

zerohedge version of the article

It doesn't look as though a hard number has been reached yet, or perhaps it is being withheld until other details can be nailed down. I get the feeling that there is probably a good deal of room within the contract for both sides, so I'm sure that there are quite a few details here and there yet to be formally nailed to the wall.

Am I right in saying that essentially this means both countries will not have to worry about money (China) and energy (Russia) if a conflict broke out?

a reply to: brace22

That's one way to look at it. It also means that they are trying to crash the dollar, not that it would take much anyway. I think times are about to get hard but the end result is needed.

a reply to: Fylgje

I've seen this comming for months, since they started openly talking about the deal. I'm pretty sure the dollar is about to go through the floor. That's all right, maybe once some of the politicians realize the stuff they have been bribed with is no longer worth anything, they will snap out of the stupidity trance they have been in for ages.

Who am I kidding. That's very wishful thinking.

a reply to: brace22

It certainly squashes the EU sanctions on Russia to an extent...
& the 1.3t owed to China by the US covers the 400b for Russia quite easily...
Not only that but it just strengthens the ties between Russia & China which may have been easier to manipulate over the last decade of stalled negotiations!!!

Can't see a downside for either at the moment to be honest!!!


Peace Brace!!!

a reply to: Fylgje


The dollar crash is the only thing China wouldn't like right now...
The 1.3t debt the States owe would be worthless otherwise...

With that in mind US treasury will be glad of this deal being the lesser of two evils!!!
Pay the debt as an Empire, rather than be left behind completely in the long run!!!

Peace Fy!!!

OP youre a little late and need to update. In another thread the deal with China fell through. the russians were getting too much and china said we cant agree to those terms.

My biggest fear right now, is that Russia are sort of building a coalition or a Union of their own with other countries that might bring about a huge world war like we've never seen before. Slowly building a friendship of need against the rest of the world.

a reply to: AnIntellectualRedneck

If it "fell through", it will probably get worked out sooner or later. It's a good deal for both countries.

It might keep China from just taking it in the event of hostilities in the west thereby reducing the chance of China taking advantage of any fracas Russia gets involved in with the west.

As far as crashing the U.S. dollar goes, it doesn't make any sense. As another poster had pointed out, the Chinese owned debt in U.S. dollars would be relegated to the toilet paper roll in the restroom...useless for anything else.

The Euro-zone is backed by the IMF which is, in turn, backed by the U.S. dollar. LMAO. The whole system would crash, world-wide.

Toss in the pressure to open exports of the now abundant U.S. natural gas supplies to Europe reduces Putin's grip on Europe. He NEEDS alternate exports just to maintain current cash flow. Never mind expanding them.

As far as this being some initial formation of a stronger union between the two countries, all one has to look at is the U.S. and China's relationship...economically entwined, every other way, NOT. The same would apply to a Russian-Chinese relationship...two egos too large for anything other than a lip-service relationship.