Russian Billionaire Timchenko Calls China Gas Deal "The Most Important Event Of The Past Decade"

Tyler Durden's picture

We may have dubbed Russia's historic, and 30 years in the making until John Kerry et al accelerated it, gas deal as the "Holy Grail" of New Normal trade arrangements, and it turns out we weren't alone in evaluating the strategic implications of this epic Russian, and Chinese, pivot toward each other. Moments ago, Russian billionaire Gennady Timchenko, shareholder of Gazprom competitor Novatek, chairman of the Russian-Chinese Business Council, and former co-owner of commodities trading giant Gunvor, said that "Economically it’s the most important event of the past decade."

Some of Timchenko's other soundbites via Bloomberg:

  • "The contract allows a balance between Europe and China”
  • "There will probably come a time when Gazprom’s monopoly won’t be a monopoly"

More importantly, now that the ground has been set, the Gazprom-CNPC deal is just the beginning:

  • Timchenko says also seeking to expand Yamal LNG, Sibur business with Asia; Volga Group is looking at China projects
  • China Harbour Engineering signed memorandum on Kolmar coal mining, Sakhatrans port projects in Russia’s Far East; may form JV
  • Chinese propose participation in domestic pipeline projects, LNG terminals to Timchenko, as Volga Group owner and Novatek board member
    "We have the desire” to invest in China, no specific talks for now
  • Volga has water reservoir in China, doesn’t rule out investing in development for bottled water

It may be ironic, but quite soon China could participate in building a bridge between Russia and its latest territorial property: Crimea.

  • USK Most, co-owned by Volga, plans to bid in tender to build bridge between Russia, Crimean Peninsula through Kerch strait together w/ Mostotrest, co-owned by Arkady Rotenberg, also on U.S. sanctions list
  • Says doesn’t rule out China cos. participating in bridge project

Finally, here is why the next company to feel the "costs" of US sanctions will not be Russian, but America's own Caterpillar:

  • If sanctions tightened, Volga Group construction units may seek equipment suppliers in China to replace U.S. cos. such as Caterpillar

Which of course would be even more bullish for CAT as it would force management to lever up even more and to buyback a record amount of its own shares just to give the impression that collapsing revenue and future business prospects is the most bullish thing that could happen to the industrial giant.

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fonzannoon's picture

My favorite is the Redhead who asked for Tina Fey!FFE00129-EEF6-4F70-B949-9557BC061101

GetZeeGold's picture



Are we done with first evers yet?


Can we just get some people that know what the hell they're doing?

Smegley Wanxalot's picture

"people that know what the hell they're doing" ... that itself would also be a "first-ever."

power steering's picture

Many consider the plastic surf lease the greaatest invention of the post war era.....

Meanwhile what are the barriers to entry in the market served by billion dollar company "GoPro"?

NoDebt's picture

Fonz knows what he'd doing.  That's his way of saying "here's how much most people care about this."

fonzannoon's picture

Thank you for that nodebt. I did not figure i'd be the first post. I found that vid of NYU graduates not knowing or caring who yellen was to be pretty funny. The few who did said the fed's job was to "keep us safe". I must admit i am bored to tears with this gas deal. so if i get junked for hijacking the thread I humbly say to my junkers, eat my ass.

BeetleBailey's picture

Agree Fonz....I talked to three college kids yesterday...was astounded of their lack of concern - or general knowledge....sad

earnyermoney's picture

I seem to recall that the interns for the PPT of the NY Fed are from NYU. Scary.

IridiumRebel's picture

Hey, they just paid a quarter million dollars for that fancy degree that will ensure them years of debt servitude. Why would they need to care about the Federal Reserve or whatever it is. 

Carpenter1's picture

Try being in Canada, even the mere mention of a negative data point gets you labeled a conspiracy theorist as you can visibly see the normalcy bias glaze over their eyes.

It's like living in 1984, but everyone is a true believer.

Canadian Dirtlump's picture

The folks behind the curtain know exactly what they are doing and that is the scary part.


As for this I would say it's a holy grail deal for humanity and a poisoned chalice for the satanic mongoloid cabal.

BeetleBailey's picture

Just watched it.....fuckin fucking DUMB can these peo...'s NYU.....the guy was talking to liberal artsy fartsy douchebags....


fonzannoon's picture

I wonder if it's dumb. Like you said it's just sad. These kids are just not set up to think that the system is set up in such a way. Their brains are not programmed that way. Their parents are all clueless. Somebody is on the hook for 50k plus a year for 4 years at NYU and a lot of those kids seemed like your typical liberal arts boneheads. They have no clue and the ones whose parents are not loaded have not had the realizaton yet that they won't need to worry about the fed because they are completely screwed in debt and are aleady toast.

Citxmech's picture

Yeah, most everybody is preoccupied and oblivious - but not all.  Just watched Comic Book Girl 19's "Epic Review" of the last Hunger Games movie and thought I had tuned into a Chris Martenson video for Christ's sake.  I was very pleasently surprised.  Some of the Gen Y crowd actually gets it - CBG19 sure does, and just maybe a few of her 250k subscribers will get trurned-on to the fuck storm that's coming.  

Ya can't force a sheep into a lifeboat, right? 

BeetleBailey's picture

It is sad. In my days in collegiate activities, these morons would be SCORNED for NOT knowing....NO one wanted to hang out with blithering idiots back then....


the change is now "dumb is the new "chic"....fucking utter nonsense....

youngman's picture

And you can bet not one USA company will be able to bid on any of this work....

BlindMonkey's picture

Like Haliburton?

Oh yeah, they ain't American any longer. Maybe they do have a shot.

achmachat's picture

I kept reading Timochenko and was extremely confused...

power steering's picture

It's a requirement for those with billion dollaar net worth

orangegeek's picture

isn't it wonderful when communists fall in love??

GetZeeGold's picture



At least they can do it without killing millions of least for now.

LawsofPhysics's picture

Given that the last decade has predominantly been about financialization and fraud he really isn't setting the bar that high, but yes, I agree.

CrashisOptimistic's picture

LoPdood, hope you saw the Monterrey shale news.

Another tidbit out.  New Zealand source says China is filling their SPR and pressuring prices (in preparation for war).

Well, maybe, except the price was north of $100 in late December before there were any tensions.

power steering's picture

Even with overstated reserves MS is BS

LawsofPhysics's picture

My brother farms about 15,000 acres on the south island.  They are well aware of what the chinese are up to.  There's a reason New Zealand has strict immigration laws.  I have another borther in oil and gas, he has less than optimistic things to say these days, so we don't talk much anymore.

Hulk's picture

I'd just like to say that my brother a borther too !!!

That is all for now, smoke if you got em and roll the motherfucking guillotines !!!

fonzannoon's picture

No more gold smackdowns anymore. now it just spends all day like a full cup of water with a tiny hole in the bottom of it.

PowerPlayer's picture

I don't see how this will really impact the global price of gas.  World supply and world demand will be what it will have been anyway.  All this does is increase the transportation expense associated with moving the gas to market.  In essense, you are taking a product that is close to a consumer market and shipping it to a consumer market further away.  This is driven by politics, not common sense.

Europe just needs to wake up and realize that Putin is not a rational being.  They need to focus on energy efficiency and more diversity in energy sources, yes that means coal if necesdsary and then ally with other countries that have energy resources.   

CrashisOptimistic's picture

No, guy.

It's driven by the Chinese explosive consumption growth of damn near everything.

It's a billion people no longer content to ride bicycles and hold hands out to warm them by fires.

And you might want to consider the possibility that there ARE no alternatives and there IS no solution to Europe's dependency.  There is no law of the universe that says there has to be enough for everyone.


LawsofPhysics's picture

That which cannot be sustained, won't be.  All things being equal, you tell me who has more experience killing people efficiently.  The West or the East?

bobby02's picture

Gas, no, but on the margin it probably will (slightly) reduce demand for LNG and/or increase LNG prices. Course, be easier to say smth intelligent about this if we saw the real pricing formula, and/or knew what Vladivostok LNG terminal capacity will look like.

813kml's picture

The expected outcome would be a reduction of the everyone.

PowerPlayer's picture

Crash, I'm not saying gas prices won't rise.  If global demand outstrips global supply through more chinese consumption, that would happen regardless of whether the Russians are piping gas to China or not.  All this means is that the Russians will be transportating their gas thousands of miles to the Chinese market and the Canadians will be transportating their gas thousands of miles to Europe.

It is simply inefficient.



PowerPlayer's picture

Crash, if there is no alternative then what has fracking done for the USA?  There most certainly are alternatives.  If you think this is the end of human civilization I assure you that human being will come up with some altertnative to continue to exist.  If you want to bet on the end of human civilization I would gladly take the other side of that bet.    

power steering's picture

Yeah moar wind mills and so-laar

wagthetails's picture

Love it...our admin kills domestic pipeline deals but pushes other countries into them.  Truth really is stranger than fiction.

BurningFuld's picture

Pipelines are evil because......   well they just are OK?

GetZeeGold's picture



What we need are trains.....trying to figure when and where exactly they're gonna derail is the fun part.

CharlieMike's picture

Easy just look for the giant fireball in the sky!

earnyermoney's picture

Uncle Warren has the trains. His private meetings with Zero drove that home in addition to reminding Barry it's time to collect on his campaign contributions.

TrumpXVI's picture

"Economically it’s the most important event of the past decade"


Color me Impressed!

What an amazing statement coming from the, "chairman of the Russian-Chinese Business Council."

post turtle saver's picture

no kidding... talking his book... too bad it's already been hashed out in other threads that a) this deal is peanuts, and b) has absolutely no impact on the petrodollar's continued dominance

seriously, we got folks on RThedge that think $400B US over the course of a few years is big money... the US pisses that away in one department in less than a year

ebworthen's picture

It's the most important event of the past decade because it is the beginning of the end of the Dollar as the world's reserve currency.

Miffed Microbiologist's picture

Absolutely. I can't stack fast enough in this environment while others around me seem blissfully unaware. How many more warning shots will we get?


post turtle saver's picture

lol wrong, not nearly big enough of a deal to pull that off... and, between two parties that could turn on each other at the drop of a hat

China needs to be able to keep a huge export margin with the largest consumer economy in the world just to keep their boat afloat... news flash, that ain't Russia, not by a long shot, nor will it be for the foreseeable future

I don't know how this translates in Chinese, but the phrase "don't shit where you eat" comes to mind... China knows this, they're just using Russia hugs & kisses as a negotiation point w/ the US

earnyermoney's picture

And the Russians are using the Chinese hugs & kisses as a negotiation point with Europe. In the mean time we've lost our moral authority to stand up these thugs as we're no different or worse in some cases. See hypocrisy on Thailand via Jen Psaki of the State Department as the latest example.

ebworthen's picture

Sure, two nations with land masses, resources, and populations twice as large as the U.S. couldn't possibly affect our dominance.