This week marked the completion of a major oil pipeline connecting the Russian province of Angarsk to the Chinese city of Daqing. This new development is in response to China’s growing need for oil, a need Russia is happy to help with. This agreement imposes an oil exchange between the two nations from 2011 until 2030. The new pipeline will essentially triple China’s oil supplies and marks a new level of cooperation between the two major nations.
“The smooth completion of the pipeline project is a model for the two countries' mutually beneficial win-win cooperation and a milestone for China-Russia energy cooperation,” said Hu Jintao at the agreement ceremony proceedings.
Although the volume of oil has been decided upon, the price as of yet has not been mentioned. This however seems a small detail given China’s economic standing. The two countries also seem to be taking this newfound agreement to heart in that they are touting it as incredibly beneficial to both sides not only in supply relations but also in public endeavors. Given this increase in oil, it will be interesting to see how China will put it too use.
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