Russia China Oil Trade Agreement

In 2009, CNPC signed agreements with Rosneft and Transneft for long-term crude oil trade. In 2010, we reached a framework agreement with Gazprom on the importation of natural gas into China, an agreement with Rosneft on the extension of oil supply to the Russian-Chinese pipeline and an agreement with LUKoil on the development of strategic cooperation. Our 13 mt/a joint Veture refinery with Rosneft was inaugurated in September 2010 in the New District of Tianjin in Binhai. The two countries` $108 billion in commercial revenue was achieved in 2018 through the implementation of a number of projects, mainly in the energy sector, which dominates Russian-Chinese economic relations, according to the Russian Federal Customs Service. Cooperation in oil and gas activities between CNPC and its Russian partners has intensified over the years. From 2003 to 2006, CNPC signed agreements with Sakhaline Energy, Lukoil and Rosneft in the areas of oil trade, oil exploration and development, as well as oilfield service and technology. September 27, 2010 Chinese President Hu Jintao and Russian President Dmitry Medvedev attended the completion ceremony of the Russian-Chinese pipeline. On the same day, CNPC reached a general agreement with Transneft on the operation of the Russian-Chinese crude oil pipeline, which runs from the Russian station of Skovorodino to the Chinese station Mohe, a framework agreement with Gazprom on the importation of natural gas into China, an agreement with Rosneft on the expansion of oil supply with the Russian-Chinese crude oil pipeline and an agreement with luKoil. The first deal was reached during a visit by Chinese President Xi Jinping to Moscow in March, his first foreign visit after Hu Jintao took control of the country. On September 27, 2006, CNPC signed a strategic cooperation agreement with Lukoil Company. In 2008, CNPC and Transneft signed an agreement in principle on the construction and operation of the Russian-Chinese pipeline.

In accordance with the agreement, China and Russia will jointly build and operate the pipeline on the basis of the Phase I project of the Russian Far East Gas Pipeline. The agreement was signed by Rosneft chief Igor Setchine and CNPC chief Zhou Jiping in the presence of Putin and the visit of Chinese Vice Premier Zhang Gaoli. On 5 September 2013, a framework agreement was signed with Gazprom on the supply of natural gas from Russia to China via the eastern route. In addition, the central banks of both countries have signed a currency exchange agreement. This has facilitated financial transactions and increased the share of payments in national currency to 15%. The agreement committed to gradually tripling China`s supply of Russian oil over the next 25 years, which currently is 15 million tonnes per year. Putin said Russia would send up to 46 million tons of oil a year to China under the treaty. Beijing and Moscow, after years of rivalry and mutual distrust, are developing an economic and strategic partnership that influences global politics, trade and energy markets.

At the same time, Beijing is waging a trade war with Washington and Russia`s relations with the West will cool.