Ural: Chinese partners invest big in oil&gas and infrastructure projects

The 5th Russian-Chinese EXPO is to take place in Yekaterinburg in July 2018. Last year, agreements worth $4.4 billion were signed on the fields of the event. 

The biggest Chinese investments flow into oil&gas and infrastructure projects. CNPC (China National Petroleum Corporation) invested $12 billion in “Yamal LNG”, its share in the country’s largest LNG project amounts to 29.9%. Geographically Yamal is located in Siberia, but in administrative terms belongs to Ural Federal District

China Railway Group intends to invest $2.5 billion in a high-speed railroad between Yekaterinburg and Chelyabinsk which is being seen from Chinese perspective as a part of  One Belt, One Road” initiative to build a new Silk Road linking Asia, Africa and Europe, a landmark program to invest billions in infrastructure projects including railways, ports and power grids. Ural region is in general regarded as a transport corridor between Europe and Asia.

Chinese small and medium-sized businesses are also investing in Ural Region, but the numbers are still modest. 

In 2017, Hilong Oil Service and Engineering invested $6 million into production of pipes for oil&gas industry in Nevyansk (80 km north of Yekaterinburg). 

Yantai Huazheng Medical Apparatus Technology started the production of the 3rd generation blood test tubes, by investing $3.5 million.

Russian-Chinese JV SLC Group is expected to invest $17.5 million into local production of drilling rigs.

Photo: zero hedge

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