"Oh, Feng, the pipeline between our countries will be completed in two days. I am invited to attend the ceremony. Are you invited?" Kirilenko remembered this and asked.
China and Russia have long been in talks to establish this long-term, stable cooperation. Hua Xia had cooperated with many countries in the past. Oil, natural gas, and these are Hua Xia's strategic energy channels.
Hua Xia has a high population and is an energy consuming country. Currently, Hua Xia's oil and natural gas consumption is the fastest in the world. The growth of Hua Xia's vehicles shows how fast their oil consumption is.
In Feng Yu's previous life, this cooperation agreement was signed in 2012, and it will last for 20 years. Every year, 1,500 tons of oil and 38 billion cubic meters of natural gas will cost more than 60 billion EUR.
Hua Xia had also built pipelines with Myanmar, Turkmenistan, Kazakhstan, Uzbekistan, and other countries. These are also Hua Xia's strategic energy channels.
Including the sea transportation routes, the pipelines with Africa, the Middle East, etc., to ensure China's energy consumption.
These are the strategic arrangements that allow Hua Xia to have enough energy and reduce the use of coal and other polluting energy sources. They also prohibit the burning of traditional fuels like wood and straw to protect the environment.
Many people say Hua Xia's oil is expensive, but they don't know how much it costs to transport the oil.
Does Hua Xia have oil fields? Yes. Are they rich in reserves? It's not very good, but it's not bad either. There are still many areas that have not been exploited. China also has a lot of shale oil reserves and mature technologies.
But Hua Xia is learning from other countries. They do not extract their own energy and use it to control the prices. Now that they have money, they will import their own energy. When the prices of the imported energy is too high, they will extract their own energy to force the other party to lower their prices.
Hua Xia is about to become the world's biggest energy importer. If Hua Xia stops importing, the other party will surely lower their prices. If not, the other party will not be able to sell their energy, and their income will be affected.
Exporting countries can control the prices of their products, and importing countries can do the same as long as they can meet the demand of not importing.
Feng Yu and Kirilenko were the ones who started the China-Russia oil pipeline. Hua Xia had been developing rapidly over the past few years. Its income had been increasing rapidly year after year, and its people's standard of living had also been improving significantly. The demand for energy had also been increasing.
Russia was once rich during the former Soviet Union, but it went bankrupt later on. After the collapse of the Soviet Union, Russia never recovered to its former standard of living.
Russia's pillar industries are industries and mines, and they rely on these industries to make money. Other countries can dabble in real estate and finance, but Russia cannot do it.
The land was vast and sparsely populated, so the houses could not be sold at a high price. People lacked trust in government finance, and the financial sector could not be revitalized.
As for science and technology, the former Soviet Union originally had the world's top scientists and engineers. However, when the Soviet Union disintegrated, most of them were poached by foreign countries, and Hua Xia did not hold back.
Of course, because of Kirilenko, there were still many top talents in Russia, but Russia's development path was not much different from his previous life.
On the other hand, Russia is also working hard to revive its agriculture and trade, but the development is mediocre. Russia might have a lot of land, but the climate is not good, and it is too far north.
Russia is near the sea, but the shipping routes are not good. Luckily, Russia has Europe's railways, and they have more transportation options.
A country is poor, and they do not provide too many basic welfare benefits. They can use some time to accumulate resources and slowly develop.
But Russia had never given up on this. Their welfare benefits are still on par with developed countries, and this caused Russia's finances to be in the red.
A country with strong industrial technologies can only rely on minerals as their main source of income. Developed countries will not use these low-value raw materials as their main source of income. Even the Middle East countries are trying to develop their crude oil chemical industry.
On the surface, Russia had reduced their military expenditure, but they are still investing heavily in their military. But their investments are not profitable.
Now, it is almost a peaceful era, and some US arms dealers had gone bankrupt. But the ones who went bankrupt are mainly those who manufacture firearms. Those who manufacture aircraft, missiles, and ships are still making lots of money.
Japan and South Korea are the best in the world in this area. Combining civilian and military technologies, they can improve their military technologies, and at the same time, they can use civilian technologies to make high profits.
Under this situation, Russia needs a long-term and stable cooperation. Hua Xia is a big importer of minerals, and Russia cooperated with Hua Xia.
But there were many setbacks in their cooperation. For example, Hua Xia said you are selling us oil and gas. Then should you be the one building the pipelines?
But Russia said if you want to buy it, you should invest in it. Aren't you the one building the pipelines in Myanmar and other countries?
How can Myanmar and Russia be the same? If Myanmar dares to swallow those pipelines, Hua Xia will force them to spit out more. If Russia really swallows those pipelines, Hua Xia will not go to war with Russia.
That's why they agreed on who will be responsible for the construction of the pipelines. At this time, Russia said we don't have money, and what are we going to use to build the pipelines?
Russia has money, but it is not enough. In the end, Feng Yu came up with a proposal. This is the same proposal Hua Xia used in Feng Yu's previous life. Low-interest loans.
Low-interest loans are loans that can only protect the capital, and the interest is equivalent to inflation. It is not profitable.
But this deal can ensure Hua Xia's energy needs. This is a good deal.
In the future, Hua Xia will use this proposal with many countries in the Middle East and Africa. Hua Xia does not lack money now, and he can easily get tens of billions of USD.
Not only Russia's state-owned enterprises are involved in this cooperation, but Polar Bear Minerals Group is also involved. Polar Bear Minerals Group is also the one investing in the construction of the pipelines in Russia.
That's why Kirilenko was invited to attend the ceremony. By right, Feng Yu should also be invited. Furthermore, Feng Yu is the biggest shareholder of Polar Bear Minerals Group, and it's normal for him to attend this ceremony.
But Feng Yu told Kirilenko that he will not attend the ceremony as he is not interested in it. Kirilenko only wants this win-win situation to happen earlier. But according to Feng Yu's predictions, if Russia does not reduce its public spending, it will be in a recession like Feng Yu's previous life.
"Brother Ki, if you are interested, you should invest in some food companies. Russia is too dependent on imports, and you can make lots of money if you invest in this industry."
Feng Yu had reminded Kirilenko, and he does not care if Kirilenko understands. Anyway, Russia is not his country.
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