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A Russian natural gas compressor station near Minsk. China is dramatically increasing its imports of crude oil from Russia and the two countries seem to be on the verge of huge deals involving natural gas.
A Russian natural gas compressor station near Minsk. China is dramatically increasing its imports of crude oil from Russia and the two countries seem to be on the verge of huge deals involving natural gas.
(REUTERS)

FRANK CHING

How Russia keeps China close – and its neighbours even closer

China is dramatically increasing its imports of crude oil from Russia and the two countries seem to be on the verge of huge deals involving natural gas, of which Russia holds the world’s largest reserves.

One indication of the size of the deals both signed and pending is the report from Russian Energy Minister Alexander Novak last week that revenue derived from Rosneft’s decision to pump seven million tons of oil annually to China via Kazakhstan will mean an additional “$2.3-billion to $2.5-billion” in revenue for the state each year.