Russia and China sign major oil deal

Russia and China sign major oil deal

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Russian Prime Minister Dmitry Medvedev – who recently visited China – during an online chat said that Russia will be supplying additional 10 million metric tons of crude oil to the country each year, for the next ten years. The PM during the online chat on October 22, 2013 said that the latest deal will be conducted by Russia’s largest oil company Rosneft.

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The value of the deal is expected to be $85 billion. Medvedev went on to say, “It is a big sum of money to any country, even to China. It testifies to the fact that we have reached a higher and a brand new level of cooperation”. In 2012, the oil imports of China were at 276 million tons and Russia became the fourth-largest provider.

The Russian PM also said that he is hoping that a deal on natural gas to China will be signed in the near future. A memorandum of understanding was signed between the two countries in March 2013, under which Russia is obligated to provide 38 billion cubic meters of gas to the Asian country on an annual basis, which will begin from 2018.

In the following years, the number is expected to increase to 60 billion cubic meters. Medvedev and Premier Li Keqiang, shortly before the online chat co-chaired the 18th regular meeting of the two nations' heads of government.

Photo Credits: RT

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