June 07, 2019

Anna Murray 

Russia and China are facing various sanctions from the West and some suggest that the two countries should cooperate and boost bilateral trade, specially raising their oil trade in Arctic regions. 

Top Russian oil producer, Rosneft announced on June 6 that Chinese companies are to put money in Russian’s Arctic oil project and their collaboration will increase the two countries’ influence in the market. Rosneft CEO Igor Sechin said at the St. Petersburg International Economic Forum, while Chinese President Xi Jinping is in Moscow for his state visit, that the oil fields in the Arctic region are believed the world’s largest undeveloped oil and gas reserves. It is estimated when the project launches from 2027 the Arctic region could reach 100 million tons of oil annually.

Russia is presently facing the Western sanction that restricts to use certain types of oil technology, and may be subject to using the dollar.  Moreover, they are to be forced to invite Western companies to involve in Russian energy projects. In the meantime, China is also dealing with or trying to prevent new tariffs in future.

Photo:Webshot.