The battle between Russia and Belarus over potash assets that has roiled global fertiliser markets this year has not thrown Moscow-based Eurochem off track. The Russian agrochemicals group is expanding its international reach with a joint venture to produce fertilizers in China.
Eurochem announced plans on Thursday to enter a joint venture with Toronto-listed Migao Corporation, the China-based specialty potash fertilizer manufacturer, that will open the door to the highly prospective Chinese market for crop nutrients. Continue reading »
Scheme of the ESPO oil pipeline route | Source: Centre for Eastern Studies
Rosneft’s plans to step up oil deliveries to China will strain Russia’s new eastern oriented export pipelines to the limit. A preliminary deal struck on Monday will see Kazakhstan come to the rescue shipping oil on Rosneft’s behalf through its own pipeline to the Chinese frontier.
It’s a set back for Transneft, but the Russian state oil pipeline monopoly will probably have to lump it. Continue reading »
Rosneft has agreed to allow CNPC to help develop east Siberian oil resources in a move that underscores deepening energy ties between Russia and China. Coming on the eve of an official visit by Dmitry Medvedev to Beijing, the deal provides a positive backdrop for talks about a long delayed contract for Gazprom to supply gas by pipeline to China.
Rosneft and CNPC signed a memorandum on Friday calling for the creation of a joint venture to explore and produce oil in east Siberia. Development of Srednebotuobinsk, a world class oilfield sitting close to the East Siberia Pacific Oil export pipeline (Espo), will serve as the foundation of the future venture, Rosneft said in a statement. Continue reading »
The $55bn sale of BP’s troubled Russian partnership, TNK-BP, to Russia’s Rosneft has created a new oil major – from size, that much is clear.
But what will be the effect on trade? Harder to say, but the International Energy Agency has mapped out a few scenarios in its April report. Some would have a big impact on oil supplies to other countries. Continue reading »
A three day visit to Moscow by Xi Jinping got off to a flying start on Friday with the signature of a clutch of agreements that will deepen energy ties between Russia and China.
As the Chinese president told reporters after meeting Vladimir Putin in the Russian capital, “We did not come to see you for nothing.” Continue reading »
Xi Jinping has picked Moscow as the first foreign capital he will visit as Chinese president, raising hopes that Russia and China will finally agree the terms of a gas supply deal that has been in the works for more than six years.
Gazprom sees the fast-growing Chinese market as critical to its plan to globalise Russian gas trade, but has so far been unwilling to reduce gas prices enough get China to sign up for supplies. But with rival Russian gas producers suddenly courting China, Gazprom may have to cave in. Continue reading »
By Sergei Karaganov
Many traits in Russian contemporary development cause me grave concern. Systemic corruption, for example; weak institutions; the manipulation of politics by an authoritarian leadership; and the economy’s excessive dependence on energy exports.
But as a seasoned observer, who witnessed Russia surviving several crises, I am tired of panicking. I believe that Russia has a future as long as there is at least some political and economic modernization. And this future depends on international cooperation, not least with the other Brics. Continue reading »
It’s not surprising that energy experts have poured cold water on the Kremlin’s latest efforts to promote a plan to export Siberian gas across the Korean peninsula.
Relations between North and South Korea were bad when the project was first floated in 2008 and have deteriorated since then. However, there is speculation that Dmitry Medvedev, the Russian president, who held gas talks with Kim Jong-il, his North Korean counterpart, this week, was sending a message to China to hurry up and clinch a gas deal with Russia or risk seeing supplies diverted elsewhere. Continue reading »