Sechin spoke about the prospects for cooperation between Russia and China

Direct investments in energy and related sectors of the economy could become a new stage in economic cooperation between Russia and China. This was stated during a speech at the V Russian-Chinese Energy Business Forum by Rosneft Chief Executive Officer Igor Sechin.

During the forum, Sechin presented a report in which he outlined his views on the current state and prospects for the development of Russian-Chinese cooperation.

The head of Rosneft noted that in 2023 Russia reached fourth place among China’s main foreign trade partners and, if the dynamics of bilateral trade continues, in the coming years it can reach second place after the United States, ahead of Japan and South Korea. “The total trade turnover of our countries over the last five years has grown to $660 billion,” he said.

Sechin added that significant mutual trade flows, as well as trade flows from third countries and clearing capabilities, made it possible to quickly switch to settlements in national currencies. Their share in Russian-Chinese settlements is currently 90%, he said.

Sechin emphasized that the development of regional markets and further integration of the countries of the Global South, as well as the stability and predictability of the Chinese economy, contribute to increasing the importance of the yuan in world trade and reducing dependence on the dollar. “The fact that the West is now actually pushing both Russia and China out of the dollar zone will play an important role in de-dollarization,” noted the head of Rosneft.

The most important area of ​​cooperation between Russia and China is energy, Sechin recalled. At the end of eight months of 2023, Russia became the main supplier of oil to China, ahead of Saudi Arabia, he noted. This year, more than 75 million tons of Russian oil have already been supplied to China, which is 25% more than last year, Sechin said.

At the same time, he drew attention to the security of Russian oil supplies to China. The Eastern Siberia-Pacific Ocean (ESPO) pipeline is a much more reliable transportation channel compared to tanker transportation through the Strait of Hormuz or the Suez Canal due to the growing geopolitical instability of these regions, Sechin emphasized.

Russian gas exports to China in 2023, according to the head of Rosneft, will update the historical maximum and exceed 30 billion cubic meters. m. He recalled that new opportunities in the field of gas transportation to China, including through the territory of Mongolia, are being discussed.

Against the background of the “nuclear energy renaissance” in the world, a promising area of ​​cooperation, according to Sechin, may be joint work between Russia and China on the construction of power units in third countries.

“A new milestone in cooperation between our countries could be direct investment in the energy sector and related sectors of the economy as a privilege for our Chinese partners, for whom new opportunities are opening up in the current conditions,” noted the Chief Executive Officer of Rosneft.

Speaking about the development of energy cooperation, direct investment in energy and energy security, Sechin noted that Russia is one of the few countries whose priority is investment in new energy projects. Separately, he drew attention to the Vostok Oil project, which is being implemented by the company.

The head of Rosneft noted that in the context of a reduction in global investment in exploration and production, this largest new project in the world in northern Siberia with a resource base of 6.5 billion tons of oil is “almost the largest project in the world that can have a stabilizing effect on the market hydrocarbons in general.”

According to him, thanks to such investment projects, the Northern Sea Route. In conjunction with the Northern Sea Route, infrastructure projects announced within the framework of the Eurasian Economic Union and the One Belt, One Road initiative are capable of creating a fundamentally new transport configuration of the Eurasian continent, Sechin recalled the words of Russian President Vladimir Putin.

Now Russian-Chinese relations are in the nature of a comprehensive strategic partnership, Sechin noted, while they have always been built on the principles of trust, respect and consideration of each other’s interests

According to him, Russia continues to aim to strengthen and deepen cooperation with the Chinese side along the entire value chain in energy and related areas, including technology, equipment supply and project financing.

“I am convinced that the potential of our cooperation is enormous, and we are only at the beginning of its implementation,” Sechin stated

He concluded his speech with a phrase from the Chinese writer Lu Xun: “Roads do not appear by themselves, but people will pass and trample on them.”