China and Russia recently in the Russian Far East city of Blagoveshchensk signed an energy cooperation agreement related.

Agreement in the next five years, China imported from Russia, at least 15 million tons of coal a year, then 20 years of coal imports would increase to 20 million tons. China, Russia was to provide a total of 60 billion in loans. 

China’s power generation and coal accounts for 80% of steelmaking raw materials, China has recently seeking resources to expand imports from Mongolia and Australia, since the long-term needs. According to Russian statistics, in 2009, China’s coal imports from Russia jumped by 15 times, reaching 12.09 million tons, accounting for energy off the coast of China at that time 10% of the total purchase.First half of 2010, China’s total coal imports from Russia has reached 6 million tons, Russia became one of the major coal-importing countries. 

Asia Securities Company Limited (Orient Securities Ltd.,) Of coal analyst Wu Jie said, “China to promote the neighbors of resources to ensure energy security on the supply of imports has important strategic significance. Taking into account only be modest growth, the purchase agreement and Chinese domestic coal market will not cause a big impact and price. “ 

According to the company’s customer data, in 2009, China import coal from neighboring Russia, the price of 87 dollars per tonne, coal imports from Australia will have to 111 U.S. dollars per ton. For China, Russia has become a self Australia, Indonesia, Vietnam, after the fourth largest coal supplier. 

The agreement also involves the two sides will cooperate to establish joint venture to develop the Russian Far East Amur River (Heilongjiang) of coal resources.Meanwhile, Russia will strengthen cooperation in prospecting, mineral processing and infrastructure construction field with China Shenhua (24.23, -0.07, -0.29%) Group cooperation.