Putin: Russia-China strategic alliance will bolster energy security in Asia Pacific

Russia and China are consistently working on the strategic energy alliance that will become a pillar of energy security in the entire region of Asia Pacific. The statement was made by Russia’s President Vladimir Putin during the 18th Saint Petersburg International Economic Forum on 23 May, BelTA has learnt. The major theme of the forum is building up trust in the age of changes.

“We know very well that this economic partnership will become a strong impetus for the development of the two countries. Taking into consideration the scale of our economies, this cooperation can be a serious factor of global growth. I would like to note that during the visit to China we agreed on Russia’s gas supplies to this country. The cost of the contract is impressive - $400 billion. The price for gas is calculated using a standard formula pegged to the market price for oil and oil products,” Vladimir Putin said.

In his words, the gas will be supplied from two new gas fields – Kovykta and Chayanda – located in the eastern part of Russia. These fields will enable gas supplies for up to 50 years. These can also help provide gas services to more communities inside the Russian Federation. Russia will invest about $55 billion during 4-6 years. “Plants to produce helium and gas and chemical products will be built together with new infrastructure facilities, like roads and energy installations. Thousands of modern high-tech jobs will be created. I would like to emphasize that this will be the world’s biggest construction project, without any exaggeration,” Vladimir Putin said.

Russia and China will also consider supplies along the “western corridor” using the resources of Western Siberia. “This will allow us to connect western and eastern gas infrastructure,” the Russian head of state said.

“China will become the major consumer of Russian natural gas alongside with Germany. After the “western route” project is implemented, China will certainly become the biggest consumer. I know that one of the objectives pursued by China is improvement of environmental situation in big cities,” Vladimir Putin said.