The development of energy security in Russia and China will be facilitated by the Northern Sea Route project and the creation of a tanker fleet
Moscow and Beijing can strengthen cooperation in the development of the Arctic. The Northern Sea Route will stimulate the rapid development of the economies of both countries, especially if China helps Russia with the creation of a tanker fleet. And for the convenience of trade, it is necessary to create an infrastructure for payments in national currencies that is invulnerable to external influences and insensitive to Western sanctions. This was stated on July 23, speaking at the opening of the VI Russian-Chinese Energy Business Forum (RCEBF), by Igor Sechin, executive secretary of the presidential commission on the strategy for the development of the fuel and energy complex (FEC), chief executive officer of the Rosneft company.
Today, a significant part of Russian oil flows to China via the ESPO oil pipeline. It is a more reliable transportation channel compared to tanker transport through the Strait of Hormuz or the Suez Canal due to the increased geopolitical instability in these regions. As the head of the oil company emphasized during his speech, China's direct investments in Russia's energy sector could help strengthen the energy security of both countries. Last year, China's announced direct investments in new projects abroad exceeded a record $160 billion. In this regard, he called on Chinese partners to pay closer attention to business opportunities in our country. In his opinion, one of the promising areas of potential cooperation is the development of Arctic resources, where the Northern Sea Route project, the shortest route for delivering Russian energy resources to Asia, is now actively developing. “The operation of the Northern Sea Route will require a high-ice-class tanker fleet, which can be created in cooperation with Chinese shipbuilding and component suppliers,” emphasized the executive secretary of the Presidential Commission on the Strategy for the Development of the Fuel and Energy Complex.
At the same time, what is happening in Currently, changes in the global economy and politics are leading to a decrease in the role of the US dollar in world trade. “This is well illustrated by China’s recent success in using the yuan,” Sechin added. — So, in September last year, the yuan overtook the euro for the first time in trade settlements via SWIFT. Also, the yuan overtook the US dollar for the first time in China’s international payments, its share now reaching 53%.”
A significant mutual flow of goods, as well as trade with third countries, allowed Russia and China to quickly switch to payments in national currencies, the share of which exceeded 90% by the end of 2023. “To further expand the use of national currencies both bilaterally and in settlements with third countries, it is necessary to create appropriate infrastructure and tools to ensure clearing operations and the opening of correspondent accounts, as well as the full range of systems for the exchange of interbank messages,” said the head of the oil industry company.
In addition, he presented at the RKEBF the updated Atlas of Investments of Russian-Chinese Energy Cooperation. This document contains information about the current state and prospects for the development of the fuel and energy complex of our country and examples of possible areas of cooperation in the oil and gas industry, electric power, the coal industry, nuclear energy, in the field of renewable energy sources, as well as about the tools and opportunities for organizing project financing and insurance in Russia energy industry. The first edition of the Atlas was prepared and presented three years ago at the opening of the III RKEBF. Since then, the contents of the document have been updated annually. “This year, the Russian side, with the active participation of Chinese companies, updated the Russian part of the Investment Atlas of Russian-Chinese energy cooperation,” said the head of Rosneft.
He added that the Investment Atlas gives a deep understanding of the specifics of the fuel and energy complex. Russia and China and is a practical guide to the implementation of joint projects. At the conclusion of his speech, he quoted the famous Chinese philosopher Lao Tzu: “Only those who have power can give it to others.” He expressed confidence in the further implementation of the agreements between the leaders of Russia and China regarding the development of market-based cooperation in the field of oil, natural gas, liquefied natural gas, coal and electricity of the two countries.