State-owned firm CEFC China Energy is to buy a 14.16 percent stake in Russian oil company Rosneft, strengthening links between the two countries’ energy sectors.
The deal is set to boost cooperation between the two state-controlled actors and drive demand for breakbulk traffic.
“This deal intensifies the energy relationship between Russia and China. A direct stake in Rosneft will make CEFC China the main driver for the relationship of Rosneft with China, ahead of CNPC, Sinopec and Beijing Gas. Rosneft keeps its customers close to its heart – buy a stake, get an oil supply agreement,” said Christian Boermel, senior analyst at consultancy Wood Mackenzie.
CEFC China is predicted to take further stakes in Rosneft projects, either in cash-intensive upstream projects, or in the downstream.
Photo: Rosneft Achinsk oil refinery plant. Credit: Wikimedia