Russia strikes oil deal for US$25b in loans

[FarCenter]

Source: The Standard of Hong Kong

Russia and China have agreed a 20-year deal to pump Russian oil to the energy-hungry mainland market in return for financing for Russian oil majors Transneft and Rosneft, Transneft said. ''Russia will deliver to China 15 million tonnes of petrol a year over 20 years under financing conditions which suit both sides,'' said Russian Deputy Prime Minister Igor Sechin, according to Transeft.

A source close to mainland state oil company CNPC was quoted by the Interfax news agency as saying China will grant loans worth US$25 billion (HK$195 billion) to the Russian oil firms in return. According to Transneft, it will benefit from financing worth US$10 billion as part of the deal. The other US$15 billion dollars will go to Rosneft.

The contracts were signed in Beijing during a meeting between Deputy Prime Minister Wang Qishan and Sechin.

As part of the deal, the two sides will also build an extension of the Russian Siberia-Pacific pipeline that flows towards China that will allow oil from Siberia to be pumped into the north of China. Transneft vice president Michael Barkov said his group will start construction of the pipeline this year so that it can be used from 2010. Its loan from China will be used primarily to finance the pipeline.

Read more: http://www.thestandard.com.hk/breaking_news_detail.asp?id=12668&icid=2&d_str=20090218

[Doctor Cynic]

1. It's a watershed moment in history.

[riderinthestorm]

2. Solidifying our status as a 2nd world power.

Not sure what the political ramifications of this will be, but .... :scared:

Nothing about this looks good for the US.

[lsewpershad]

9. Maybe

It will be to our benefit if we stop thinking {believeing] we are god of the world

[unkachuck]

3. a new pipeline....

....plenty of oil for China from Russia....25 billion in infrastructure work for Russian labor and all paid for with trinket-dollars from the US....isn't 'free markets' a wonderful thing?

[FarCenter]

4. Same story in Russian media

Russia's Transneft plans to start on Chinese pipeline leg in 2010

MOSCOW, February 17 (RIA Novosti) - Transneft plans to start building a Chinese leg of the East Siberia-Pacific Ocean later in 2009 and to commission it in 2010, Russia's monopoly pipeline operator said in a statement on Tuesday.

<snip>

http://en.rian.ru/russia/20090217/120190194.html

<hr>
Makes sense for both countries. Russia has the resources, and China has the market.

[riderinthestorm]

6. Financed by US shoppers hyped on buying gizmos from China.

The US is not the major player in this deal. The US consumer is simply the patsy putting down the mark on the deal.

We've officially descended into second nation status.

I'm not casting aspersions, just laying out facts. The "big" players are moving on without us (in deal making terms). We have nothing more to offer Russia or China.

So. Be. It.

[Jack_DeLeon]

5. Are yall glad that our money is going to helping to modernize Russia and China?

Thanks to all the useless shit we as a nation bought from them.

[stillcool]

7. China, Russia, Iran, Venezuela...

that chess board is getting crowded.

[acmavm]

8. Russia and China cooperating? This is NOT good for us. Not at all.

But it was inevitable considering what a bunch of swaggering thugs our government has been. The world was our banana republic and we were here to pick fruit.

Well, not it's time to pay.