China and Russia sign massive energy deals

Hail breakthrough agreements that will see Russia increase oil supplies to China.

The agreements were signed in Moscow by China's new President, Xi Jinping, and his Russian counterpart, President Vladimir Putin. The series of energy and other agreements will further tighten both countries' already close partnership.

"Russian-Chinese energy cooperation is all-encompassing, full-sized and comprehensive," Xi said.

Xi and Putin presided over the signing of an agreement between Russia’s state-owned integrated oil company, Rosneft, and China's state-owned China National Petroleum Corporation that is the largest integrated energy company in China.

Rosneft chief Igor Sechin said the agreement would see Russia gradually increase supplies over the next 25 years from their current level of 15 million tonnes. At their peak the supplies are to increase by 31 million tonnes annually. Rosneft will receive a US$2 billion loan from China.

Russia will also finalize a huge gas deal with China. Gazprom, Russia’s largest natural gas company, said a legally binding document would be signed in June, with the final contract signed by yearend.

Gazprom also signed a preliminary agreement paving the way for the future 30-year contract that will see Russia export gas to China in 2018, before increasing supplies to 60 billion cubic meters.