China-Russia pipeline

Yesterday the Chinese news agency Xinhua reported that the crude oil pipeline between Russia and China has been opened and is operational. The pipeline is approximately a 1000 kilometers long. The ESPO pipeline will help ease the energy hunger of China and the Russian dependence on the European market.

The ESPO pipeline (nowpublic.com)

In the past couple of years we have seen many tensions between Russia and European nations within the energy supply sector. Most notably the Russian and Ukranian dispute on gas prices which led to the Russians cutting off supplies and thus affecting millions of consumers in Europe. With a new pipeline between Russia and China Europe has to be even more careful with proce tactics and market strategies as the Russian now have a better position in negotiations. Still the dependence for now stays mutual and thus compromises have to be made.