Russia and China Deal

[Agent Nationaux]

Russia and China have signed a 30 year gas deal worth $400bn. They have also agreed to deal in local currencies and bypass the dollar.

Russia signs 30-year deal worth $400bn to deliver gas to China | World news | theguardian.com

Russia, China sign deal to bypass U.S. dollar | Al Jazeera America

The Chinese have managed to get it at a cheaper price than what the Russians wanted.

In addition, the Russians will also be helping the Chinese develop a long distance Airliner to compete with Airbus and Boeing.

Putin looks to improve China relations amid rising tensions with the west | World news | theguardian.com

It will be interesting to see how Europe and the US react to this.

 

[Athlai]

Wow thats like 400 The Dark Knights.

 

[Esperance]

if i were putin atm (at the moment) i would attack croatia.

 

[social]

Cant imagine that there will be any reaction whatsoever as both countries are major players in the world's energy markets and transact with many western countries on a daily basis

 

[Agent Nationaux]

My worry is about gas prices going up.

 

[Burgey]

I don't know that this is a good development for the Australian gas industry, which I think was hoping to supply a lot to China. But I don't really know a great deal about that industry tbh, other than there's about to be about a 30% rise in domestic gas prices in Australia.

 

[social]

I don't know that this is a good development for the Australian gas industry, which I think was hoping to supply a lot to China. But I don't really know a great deal about that industry tbh, other than there's about to be about a 30% rise in domestic gas prices in Australia.

Australian gas companies sell every square foot of LNG that they produce on long term contracts to countries like China, Japan, Korea and Taiwan e.g. Woodside is on track to become one of the world's largest producers but does not have any surplus gas available for at least 15 years

Typical gas contract is 20-30 years as long-term contracts are required as security for the massive investment required to build liquefaction plants, etc

In summary, this is nothing unusual

 

[Burgey]

Cheers. Appreciate that.

If it was something potentially bad for Australia, I was going to blame the Carbon Tax.

 

[social]

The age-old issue facing Australia energy consumers is that all energy production in this country is in the hands of the private sector and they are naturally going to sell to the highest bidder.

On the plus side, the Oz government collects a royalty (typically 7%) on sales and is not responsible for funding the well/mine/etc.

Therefore, we should be compensated for high energy prices by cheaper/better services funded by these royalties

Sounds good in theory anyway

 

[smalishah84]

Russia and China have signed a 30 year gas deal worth $400bn. They have also agreed to deal in local currencies and bypass the dollar.

Russia signs 30-year deal worth $400bn to deliver gas to China | World news | theguardian.com

Russia, China sign deal to bypass U.S. dollar | Al Jazeera America

The Chinese have managed to get it at a cheaper price than what the Russians wanted.

In addition, the Russians will also be helping the Chinese develop a long distance Airliner to compete with Airbus and Boeing.

Putin looks to improve China relations amid rising tensions with the west | World news | theguardian.com

It will be interesting to see how Europe and the US react to this.

This is just meh

 

[auditor]

Dollar gets more russian ruble. The cost of gas will increase.