China And Russia Petroleum Cooperation

As we all know, since the outbreak of crisis in Ukraine, the United States and the European Union have imposed economic sanctions against Russia, ranging the sanctions on Russian banks, energy, weapons, shipping industry and other, US and EU economic sanctions against Russia are mainly two kinds: the aim of the first one is to restrict funds between banks, the second- to depress the export prices on crude oil by OPEC, to impact the Russian economy, as the first blow of sanctions against Russia is mainly reflected in the conduct of foreign trade, thus the impact is acceptable, and, as the aim of the second one is to drive down the export crude oil prices, the impact is enormous, as Russia is a country with energy output, only if the crude oil prices reach $112 per barrel we can talk about the profit, and the state budget is balanced, nevertheless, led by Saudi Arabia for OPEC crude oil release mining restrictions, the United States has increased the output of crude oil, and the international oil prices, so that the ruble from last year(2014) against the US dollar fell sharply, that is the one of the reasons, why Russian foreign exchange reserves has shrunk so dramatically, and the Russian economy has been severely affected, in this to lead Russia out of economic difficulties, we must strengthen cooperation with countries in the Asia-Pacific region, especially with China, a country of huge demand for oil and energy.The huge energy demand of Asia-Pacific countries is a vast market, which make the Russian energy export diversification strategy to be guaranteed. Especially in the growing China, as a great and stable demand for energy market, is an important market for Russian energy exports. Earlier with the Chinese Premier Li Keqiang’s visit to Russia, the trade settlement on ruble renminbi was promised and about 50 inter-government and inter-enterprise cooperation agreements were signed, involving trade, investment, energy, transportation, finance, place, culture and other. There is no doubt, that the access to economic and trade cooperation between China and Russia is bound to add the new power, which is going to be enough to prove, that China also hopes to strengthen energy cooperation and trade with Russia, to promote the strategic partnership between the two countries.The aim of this article is to analyze an oil cooperation between China and Russia, its present situation and the influence on both countries.