Russia Turning to China for Long-Term Funding

Oiland Gas360 ^ | September 29, 2015

[RC one]

Chinese Fund Buys 9.9% Stake in $27 Billion Russian LNG Project

Since the implementation of U.S. sanctions against Russia for its actions in Crimea, one of the major challenges facing the Russian oil and gas industry is gaining access to long-term project financing. Under the current sanctions regime, loans to Russia can be no longer than 30 days if they come from the U.S., and 90 days if the loans are from European lenders. Cutting off access to longer-term loans has made financing capital-intensive projects like liquefied natural gas (LNG) much more difficult.

Earlier this month, Russia’s largest independent gas company, Novatek (ticker: MCX: NVTK), announced that China’s state-run Silk Road Fund (SRF) agreed to purchase a 9.9% stake in Novatek’s Yamal LNG project, pumping much needed capital into the project. The price SRF paid for its stake in the Russian LNG project was not disclosed.

Increasingly tense relations between Russia and the West have been a major catalyst for the Russian oil and gas industry to start looking to Asian markets to sell its gas. Europe, historically Russia’s largest buyer, has been trying to reduce its reliance on Russia as political relations continue to sour, leaving Russia with excess capacity to sell.

[ETL]

From the Sino-Russian Joint Statement of April 23, 1997:
"The two sides [China and Russia] shall, in the spirit of partnership, strive to promote the multipolarization of the world and the establishment of a new international order."

http://www.atimes.com/atimes/Central_Asia/HI29Ag01.html
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"Joint war games are a logical outcome of the Sino-Russian Friendship and Cooperation Treaty signed in 2001, and reflect the shared worldview and growing economic ties between the two Eastern Hemisphere giants."

http://www.heritage.org/research/commentary/2005/09/war-games-russia-china-grow-alliance

http://www.foxnews.com/story/0,2933,170287,00.html
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Sept 11, 2014

China and Russia to build major seaport: report

China and Russia will build one of the largest ports in north-east Asia on Russia’s Sea of Japan coast, reports say, in a further sign of the powerhouses’ growing alliance.

http://www.abc.net.au/news/2014-09-11/china-and-russia-to-build-major-seaport-report/5738036
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Obama: "We Welcome China's Rise"
CBS News ^ | January 19, 2011 | Stephanie Condon

[MNDude]

Hey! That should be our money to borrow.

[RC one]

Apparently not: China is Dumping US Debt

[Vaquero]

Will they sell their country to the Chicoms too..... Stay tuned!

[Sir Napsalot]

Especially not after the (8) year leadership of Obamassiah, and the fickle nature of our voting public.

[Zuben Elgenubi]

This does not surprise me. The GDP of the Russian Federation is something like $1.8 trillion. Italy is about $2.3 trillion, with the USA at $17 trillion. Putin will quickly go bankrupt without outside financial help.

[RC one]

Our debt to GDP ratio is over 100%, not including unfunded liabilities. No matter how you spin it, that’s bad. Our debt to national income is even worse. We are the nation flirting with bankruptcy here. Our ability to export our inflation is the only thing keeping us afloat and that’s what everything is all about. IMO. I’m not saying the sky is falling, but I am saying it isn’t 1985 anymore. The game has changed.