Russia Prepares Mega-Deal With India After Locking Up China With "Holy Grail" Gas Deal

Tyler Durden's picture

Last week we reported that while the West was busy alienating Russia in every diplomatic way possible, without of course exposing its crushing overreliance on Russian energy exports to keep European industries alive, Russia was just as busy cementing its ties with China, in this case courtesy of Europe's most important company, Gazprom, which is preparing to announce the completion of a "holy grail" natural gas supply deal to Beijing. We also noted the following: "And as if pushing Russia into the warm embrace of the world's most populous nation was not enough, there is also the second most populated country in the world, India." Today we learn just how prescient this particular comment also was, when Reuters reported that Rosneft, the world's top listed oil producer by output, may join forces with Indian state-run Oil and Natural Gas Corp to supply oil to India over the long term, the Russian state-controlled company said on Tuesday.

Rosneft CEO Igor Sechin, an ally of President Vladimir Putin, travelled to India on Sunday, part of a wider Asian trip to shore up ties with eastern allies at a time when Moscow is being shunned by the West over its annexation of Crimea.


With EU nations threatening to cut their reliance on Russian oil and gas, Russian officials have started to look East.


Rosneft said it had also agreed with ONGC they may join forces in Rosneft's yet-to-be built liquefied natural gas plant in the far east of Russia to the benefit of Indian consumers.

We just have one question: will payment for crude and LNG be made in Rubles or Rupees? Or in gold. Because it certainly won't be in dollars.

Rosneft, which is increasing oil flows to Asia to diversify away from Europe, did not provide any additional details but said it had discussed potential cooperation with Reliance Industries and Indian Oil.

It did not have to: it is quite clear what is going on. While the US is bumbling every possible foreign policy move in Ukraine (and how could it not with John Kerry at the helm), and certainly in the middle east, where it is alienating Israel and Saudi just to get closer to Iran, Russia is aggressively cementing the next, biggest (certainly in terms of population and natural resources), and most important New Normal geopolitical Eurasian axis: China - Russia - India.


The company said Sechin and the head of Indian conglomerate Reliance Industries also met and discussed potential cooperation in developing Russia's offshore resources, viewed by Moscow as a source of future oil production growth.


India was the last country in Sechin's Asian trip, where he also visited Japan, South Korea and Vietnam.


Russia is the world's top oil producer, pumping over 10 million barrels per day but mostly from west Siberian deposits, which are running out. Moscow is betting on offshore and unconventional oil to maintain the level.


At the same time, Russia is trying to diversify its energy flows away from its core European markets, with Rosneft leading the race with plans to triple oil flows to China to over 1 million barrels per day in coming years.


Rosneft said Sechin also discussed potential shipments of Russia's East Siberia-Pacific Ocean (ESPO) oil blend to India's biggest refiner Indian Oil Corporation (IOC.NS) but did not provide details.

There is only one country missing - Germany. Because while diplomatically Germany is ideologically as close to the US as can be, its economy is far more reliant on China and Russia, something the two nations realize all too well.  The second the German industrialists make it clear they are shifting their allegiance to the Eurasian Axis and away from the Group of 6 (ex Germany) most insolvent countries in the world, that will be the moment the days of the current reserve petrocurrency will be numbered.

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NemoDeNovo's picture

LOL here comes the #Boom


Won't be long now, I Hope so tired of this game............

Diet Coke and Floozies's picture

I am sooo fucking sick of the term "Holy Grail" in articles. Smells like MSM marketing.

Pladizow's picture

Putin: Go frack your self America!

Manthong's picture

And a seriously troubled Barry’O in Brussels solemnly asks, “Where is the closest private golf course?”.

ParkAveFlasher's picture

Quick, somebody crash a plane!!!

orangedrinkandchips's picture

it's min or so the "ppt" comes in......


just wait it out....


Fed will pump it back up soon.....

Fortunate Fool's picture

"The second the German industrialists make it clear they are shifting their allegiance to the Eurasian Axis and away from the Group of 6 (ex Germany) most insolvent countries in the world, that will be the moment the days of the current reserve petrocurrency will be numbered."


ZH seems to be mathematically challenged... Germany's biggest trading partners are in Europe, France being its biggest. The analysis is partly right, but it's not just Germany that is shifting to the East, it's the entire EU. Again, Russia can't survive economically without Europe, and Europe will still need Russia's Gas in the forseable future.

Once all the political posturing over Ukraine ends (see how Europe has been much more measured in its threats than the US...), what's going to happen is a grand bargain between Russia, the EU, China, maybe India, and Brazil to redefine the world order in which the US will see its already diminishing inluence being reduced further more, with the final goal of indeed ending the US dollar as the world's reserve currency. This geopolitical shifts have been happening for a long time and nothing is new here. The new "multipolar world" has been theorized in Europe decades ago.

Thinking that Russia would give up Europe's market for India is laughable, to say the least. 

Vampyroteuthis infernalis's picture

These are the old diplomatic ties that existed during the cold war between the Soviet Union and her neighbors. Putin is using the cover in the Ukraine to restart these ties minus the US and EU. This does not mean Russia will drop the EU, it does mean they are expanding into markets unimpeded by the majors. Major western oil and gas companies are now getting a serious competitor for the developing markets.

Herd Redirection Committee's picture

Leverage means not depending 100% on ANY SINGLE player.  So Russia dealing with India/China is not to replace their other trade partners, but to 'spread it around'.   Look at the US' crude oil imports.

They get it from AT LEAST 3 different primary sources, so that Canada doesn't have leverage, Saudi doesn't have leverage, Mexico and Venezuela...

johnQpublic's picture

we have always been at war with Eurasia

Bastiat's picture



Putin to the US: Go pound shale.

Occident Mortal's picture

The new world order...



Poundsand's picture

Or of course, go Pound 'tar' sands.

rubiconsolutions's picture

"To be paid "traded " in GLD."

Wrong. GLD is an EFT. It will traded in AU. As in physical medal. Russia won't have any part in paper gold. "Show me the bricks"

Drifter's picture

Hmmmm..... sounds like that new asian alliance is forming up rather nicely.

And gosh, look how many have nuclear weapons.  And lots of gold.

Germany won't join it, it's not german mentality to join it, but they will part ways with EU and launch their own currency.

Hobbleknee's picture

Germany is joined to the US military bases that occupy it.

Crash Overide's picture

Putin: Check.

Obama: Where am I supposed to move my pawn again?


It seems like an organized transfer of international power to keep it all going, the game must go on...

Ghordius's picture

excellent comment, Fortunate Fool

further, Tyler, "while the West was busy alienating Russia in every diplomatic way possible" The West? All of it? or mainly the western part of the West?

oh, and by the way, Poland is a way bigger friend of the US than Germany will ever be

Againstthelie's picture

Interesting analysis but it has one weakness:

You assume that Merkel and the German regime was following Germany's interests.

Merkel openly said several times: this German state's reason is the support of Israel.

Merkel just received the highest Israeli civilian medal (she built up the Jew Klitschko in their Zionist Konrad-Adenauer-Stiftung).


I have another example, to make it more clear:

Is Obama's foreign policy in the interests of the USA? Was Bush's foreign policy in the interests of the USA? NO! It's AIPAC's foreign policy.

And they give a sh.t if they destroy the countries they control. These alien forces do not care about the nations they control. They only use them, exploit them. Using cattle and doing god's work!

Therefore a ZOG-Germany will NEVER turn away from USrael. Even if the German economy would be destroyed by Merkel's stupid and anti-German foreign policy.

And btw, it is rumored that Merkel is Jewish (Kamirczak).

Arrowshot's picture

Thats OK. We will still have Mexico, Venzuela, Cuba and Puerto Rico as potential allies. sarc/

MeelionDollerBogus's picture

Except they're doing it and they're the ones laughing while Europe is wondering how to keep the heat on.
Evidence suggests you've overlooked something.

Oh regional Indian's picture

Trouble with gas is that the current infra is too damn vulnerable to to many human and geological and geopolitical problems. 

They have to do something different from pipelines.


Oh regional Indian's picture

I think JP Morgue or someone has commisioned a Baloon LNG tanker...saw it here some years ago. Huge baloon being towed on a platform ship.


But yes, something different.



johnQpublic's picture

what happens when that rapidly decompresses?

Rory_Breaker's picture

ORI, saw your TED talk, great stuff man!

cossack55's picture

I hear the Russians have hired Zippo to design their new class of torpedo.

CrashisOptimistic's picture

FYI, LNG requires effort to create it.  Freezing and pressure.

Then after you have it, it starts to warm up (even if insulated) and turn back into gas.

In other words, LNG has losses enroute anywhere. 

There is no magic.

Herd Redirection Committee's picture

Yeah, well, if your choices are shipping out of Vladivostok, and having inefficiencies, OR trying to get a pipeline built through Central Asia....

ILLILLILLI's picture

Wireless pipelines...because, you know, the Internet is a series of tubes.

MeelionDollerBogus's picture

Bloombox turns nat-gas into electric power & beams it wirelessly to a receiving coil. I think all wired grids could be replaced with such induction coils.

Chuck Walla's picture

Who Cares! Obama and the Socialist Progressives say we can put our energy reliance on the weather! Oil, so last century.






Oh regional Indian's picture

You are good Chuck, always chuckle at your posts. Even if you made that german up...

Forward indeed!


mccvilb's picture

AHA! That explains it! Couldn't understand how or when I picked up a second  language.

BlindMonkey's picture

"Quick, somebody crash a plane!!!"


Speaking of planes: I wonder if they will be able to bring Brazil along.  IMO the way to do that would be to include Brazil in the tech and manufacturing of the PAK-FA 5th gen fighter.  Either as a manufacturing partner or under license.  

I don't know if they can back out of the SAAB deal but Russia would certainly Brazilian wax the smile off of the EU if they took that deal.

Freddie's picture

Is Sweden even in the EU? I know they are not in the Euro.  Too smart for that shit.

tempo's picture

Frac gas is the most expensive leftover crumbs. Five years from now the nightmare cleanup from 100,000+++ depleted wells will be all to obvious. Most frac gas wells decline 30% per year and are not economic. They are only profitable to the initial promoters who are getting out. Its only deserving that the EU will end up w the most expensive and declining gas source in the world while China and India are ramping up industrial production. The US dollar as a reserve currency and our standard of living will be gone.

Tom_333's picture

It´s kinda neat though. Export the manufacturing industry to Chindia. Suck the US dry with cheap imports. Then fill the energy demands of said giant manufacturing complex with energy from that huge country that you are trying to sanction with feeble economic measures.So that the energy exporter can thrive on the exported financial affluence from the country that divested itself of manufcturing capability. I am at loss how to find words to best define the situation...cock-sucker by proxy. Maybe.

SWRichmond's picture

we need either a new government or NO government

JR's picture

It's going to be bye-bye dollar, isn't it?

Tall Tom's picture

Yes.  It is the best news of the day.


Americans are losing Dollar Hegemony.


The Empire is collapsing. The neo-Dark Ages are on their way.


The entire Globe will be shocked.


America will go into a hyperinflationary inferno, deservedly so, as it loses World Reserve Currency status. The State will collapse.


Yes...Slowly at first then all of a sudden. There are none so deserving. After waging war on a World for the past 40 years, after murdering millions of children, after destroying many other people, they will reap that which they have sown.


What the control freaks do not understand is that more control yields more chaos as it is an expression of the fear of loss.


More freedom yields more order as it is the finest expression of love.


To gain one need to lose the illusion of control and give freedom. But the psychopaths never understand that. They worship the state, which is only a state of chaos, confusion, and fear.


God's justice will prevail as God is Love.

Freddie's picture

And all the dual citizens will have their jets waiting to leave the USA after they have destroyed it.

Franktastic's picture

They will be hunted the dogs of war that they are.


Tall Tom's picture

And people may just be shooting them down on takeoff at the regional airports...


They only have to target the engines.

Quus Ant's picture

I vote no federal govt. 

No elected official should be beyond gun.... err... I mean earshot.

Divided States of America's picture

the BRIC countries should be renamed BREAK countries because they will soon BREAK the powers currently held by the West.