Natural gas will flow via pipeline from Russia to China’s major cities as early as 2018, thanks to a massive deal between the two countries. The $400 billion, 30-year pact is a victory for Russian President Vladimir Putin at a moment when Russia faces Western economic sanctions over its actions in Ukraine. Jeffrey Brown reports.
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Now to a massive energy agreement worth hundreds of billions of dollars between two nations whose relationships with the United States grow more tense by the day.
Jeffrey Brown reports.
The $400 billion deal became reality at this ceremony in Shanghai yesterday. Russian President Vladimir Putin and his Chinese counterpart, Xi Jinping toasted the 30-year pact between their state-controlled gas monopolies.
PRESIDENT VLADIMIR PUTIN, Russia (through interpreter): This will be the biggest construction in the world for the next four years, without any exaggeration. It is new enterprises and thousands of new workplaces.
Today, a spokesman for China's Foreign Ministry also hailed the agreement.
HONG LEI, Spokesman, Chinese Foreign Ministry (through interpreter): These deals play a significant role in promoting comprehensive energy cooperation and the overall strategic partnership between China and Russia.
To make it all happen, Russia will lay thousands of miles of new pipelines across Siberia, sending natural gas to China's major cities as early as 2018. The deal is a victory for Putin at a moment when Russia faces Western economic sanctions over its actions in Ukraine.
In Washington, State Department spokeswoman Jen Psaki said yesterday the sanctions will go forward regardless.