China’s direct investments in Russia’s energy and related industries will help strengthen energy security and develop mutually beneficial cooperation, and can create a significant synergistic effect, said the Secretary General of the Fuel Development Strategy Commission under the President of the Russian Federation and the Energy Complex, Rosneft President Igor Sechin said at the opening of the VI Russia-China Energy Business Forum and Environmental Safety.
The head of the company noted that Russian energy projects are attractive for Chinese investments and strengthen the country’s energy security.
He explained that a significant portion of Russian oil is supplied via the ESPO oil pipeline, which is a more reliable transportation channel compared to tanker transportation currently carried out through the Strait of Hormuz or the Suez Canal.
According to Sechin, Russia is one of the few countries that consistently invests in the development of traditional energy, and China has transformed from a capital importer to a capital exporter over the past few years.
Thus, last year, China’s announced direct investments in new projects abroad exceeded a record $160 billion, the Rosneft head recalled.
“We hope to increase Chinese direct investment in the Russian energy sector, which is characterized by high return on investment for investors and no equity return risk,” he added.
According to Igor Sechin, one of the promising areas of potential cooperation is the development of Arctic resources, where the Northern Sea Route project, a route for delivering energy resources to Asia, is currently being developed.
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Source: Gazeta
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