China withdraws from Russian gas marketing deal

RUSSIA / FSU POLITICS - In Brief 28 Mar 2022 by Alex Teddy
On March 27 it was announced that Sinopec Group is pulling out of a USD 500 million deal to market gas for Sibur. Sinopec Group is state run and fears being sanctioned if it proceeds with the deal.Sinopec attended a meeting with the Chinese Foreign Ministry before announcing its decision. This has led to suspicions that it was ordered to pull out of the deal by the Chinese government. The meeting was also attended by the China National Petroleum Corp and the China National Offshore Oil Corp. It is rumored that they were told to reduce links with Russia.One of Sibur's directors is Gennady Timochenko, who is a close friend of Putin. Timochenko has been under Western sanctions since 2014. In February Xi and Putin said their countries had a partnership without limits. Russia was hoping for more financial assistance from China in the face of Western sanctions but that has not been forthcoming. Biden warned China not to assist Russia even economically. Beijing has refrained from criticizing the war or even calling it a war. It endorsed the Kremlin's line about Ukrainians being Nazis. However, the Chinese cannot be happy with higher prices for oil, gas and food. The economic harm the situation is causing to the West means that Western countries will buy fewer Chinese manufactures.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.