After a decade of negotiations, Russia managed to wrangle out a gas deal with China – and just in the nick of time.
Europe has been looking to extricate itself from its dependence on Russian energy, while Putin wants to show Europe that it has friends – and customers – in the east.
When China’s largest oil company signed up to a 30-year deal to buy from Gazprom up to 38bn cubic metres of gas per year from 2018, it helped the Russian gas company to make its first shift away from the west.
Europe’s demand for energy is critical to the Russian economy: gas and oil exports make up some 52 per cent of Russia’s government budget, which has slipped back into deficit in the last two years. So Russia needs to find another market for its energy exports. Read more