Russian energy partnership with China and India is very promising

Monday, June 27, 2022

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Russian energy partnership with China and India is very promising, said MP Andrei Kokoshin as he was commenting for Novosti the prospects of Russian petroleum shares purchased by a Chinese and an Indian oil corporations. Mr. Kokoshin leads a committee for CIS affairs and contacts with ethnic Russians abroad on the State Duma, the Russian parliament's lower house. "It is quite logical for Indian and Chinese capital to have interests in Russian and other CIS countries' oil-and-gas industry. It is natural now, and will be so in the future. The arrangement promotes Chinese, Indian and CIS economic and geopolitical goals. "China and India are coming into the foreground as energy consumers to get on a par with the United States, the European Union and Japan. As for Russia, it comes second to the OPEC for its role in energy geopolitics, or is doing even better. "Russia is dynamically building up contacts with India and China to diversify its energy partnership. In that, it works in full compliance with global market economic rules. The efforts are making not only particular Russian-based companies or the whole industry but the entire country more competitive," said the parliamentarian. Rosneft recently purchased the Yuganskneftegas. Its assets will make a new company. Up to 20 per cent of the shares will be offered to the China National Petroleum Corporation, or CNPC, Victor Khristenko, Russia's Industry and Energy Minister, announced shortly before New Year. The tentative arrangement was envisaged by previously signed Russian agreements with the CNPC. They also envisage reverse transactions, with Russia to purchase CNPC oil assets in China and third countries. The Indian-based corporation ONGC-Videsh also intends to acquire a 10 to 15 per cent Yugansk block in a deal the Indian government has authorised, as was announced this week. Affiliate to the ONGC, or Oil and Natural Gas Corporation-Indian government oil-and-gas mammoth, the Videsh is not engaged in the home market but only in the overseas. In Russia, its interests are now limited to a 20 per cent block of ambitious project Sakhalin 1, purchased from Rosneft. The ONGC has invested roughly 1.7 billion US dollars in it, and intends shortly to invest another 1.5 billion in project Sakhalin 3. India's own petroleum extraction makes a scanty annual average 32 million tonnes, and imports account for up to 70 per cent of its consumption. The ONGC has spent close on two billion dollars on petroleum prospecting within preceding years.

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