Putin expected to sign huge pipeline deal during Shanghai visit

By James Griffiths, May 20, 2014

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Russian president Vladimir Putin arrived in Shanghai on Tuesday for an Asian regional summit. During his China visit, the Russian leader is expected to finalise a 30 year pipeline deal with Chinese president Xi Jinping. 

"Now Russia-China cooperation is advancing to a new stage of comprehensive partnership and strategic interaction," Putin said. "It would not be wrong to say that it has reached the highest level in all its centuries-long history."

The pipeline deal, under negotiation for over 10 years, would see Russia send 38 billion cubic metres of natural gas to China every year beginning in 2018, with the potential to expand the annual capacity to 61 billion cubic metres. 

Natural gas represents nearly 60 percent of Russia's total exports, put at risk by tensions between Russia and Europe – which imported more than 160 billion cubic metres of gas in 2013 – over Ukraine. 

As well as the expected pipeline deal, the Russia-China Investment Fund is to invest 6.2 billion yuan ($1 billion) in three infrastructure, tourism and logistics deals, with agriculture and natural resource sector investments next on the agenda. 

The three deals will be signed during Russian President Vladimir Putin's working visit to China on Tuesday and Wednesday.

They include the first Russia-China railway bridge across the Heilongjiang River, called the Amur River in Russia; tourism and senior living infrastructure in the two nations; and investment in the Chinese division of leading logistics provider Global Logistic Properties Ltd.

Here's a look at the proposed pipeline, via Gazprom: 

[Image via CNS]

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