The party-state elite and oligarchs of Russia joined together to sign a $85 billion deal to extract Russian oil and sell it to China, through a mutual agreement between Prime Minister Dmitry Medvedev and Chinese Premier Li Keqiang on Tuesday.
Rosneft, Russia’s biggest producer of oil, under the grip of oligarchs will fuel China’s turbocharged growth with an additional 70 million barrels of crude oil per year for the next decade, according to latest agreement.
The agreement “testifies to the fact that we have reached a higher and a brand new level of cooperation,” said Dmitry Medvedev in his prepared remarks.
According to some estimates, China is now the world’s largest economy, having surpassed United States shortly after Beijing Olympics. China is also the world’s largest energy market and its biggest energy importer.
Russian energy giants run two oil pipelines and one gas pipeline to deliver energy to China. China imported as much as 170 million barrels of oil from Russia in 2012, according to China’s state controlled news agency, Xinhua.
In June, Russia and China signed another agreement according to which 2.5 billion barrels of Russian oil valued at an estimated $270 billion would be supplied to China over the next quarter century.
While the hostile party-state elite and the oligarchs are enriching themselves with trillions of dollars in oil and gas wealth, Russian people have been reduced to abject poverty, squalor and humiliation.
It is hard to imagine a people that have suffered more under state terror than Russians. From 1917-1991, the genocidal Bolsheviks imposed an uninterrupted reign of mass terror and depredations against Eastern-Europeans, unprecedented in the history of mankind.
When the Soviet Union dissolved, the former communists morphed into “capitalists” overnight and proceeded to plunder and ransack Eastern Europe with spine chilling rapacity.
Hyperinflation and mass shortages of food, fuel, medicine coupled with mass unemployment and total breakdown of law and order devastated the European half of former Soviet Empire, while birth-rates collapsed.
Russians have been subjected to what demographers are calling “hypermortality”, a state where deaths far exceed births leading to a catastrophic demographic collapse of societies and entire ethnic groups.
As Russian population is decimated in Eastern-Siberia, Chinese, which outnumber Russians 30-to-1 in that region, are migrating and acquiring land and economic assets. This might create a new geo-political crisis in coming years.