The Russo-Congress Fund announced on Monday a significant joint investment agreement between Russia’s ‘United Oil & Gas Chemical’ and China’s Shan Yuan Industrial Development. The pact entails an investment worth five billion yuan (approximately $686 million) to establish an expansive oil shipment complex in the Far East of Russia.
This establishment will significantly streamline the export of Russian oil to China. This move comes as Moscow intensifies its infrastructural developments aimed at diversifying its goods exports towards the East, shifting focus from Europe, which Russia currently perceives as politically “unfriendly.”
The project’s funding agreement was inked last week in Vladivostok, situated in Russia’s easternmost region, during an economic forum. According to the Russo-Congress Fund, financial resources for the venture will be accumulated from both Russian and Chinese financial institutions.
The proposed complex is set to be constructed in the Jewish Autonomous Region in Russia, near a railway bridge traversing the Amur River, connecting the Russian town of Nizhneleninskoye with the Chinese town of Tongjiang.
Details from Russo-Congress highlight the grand scale of the project. It will comprise five massive infrastructure units, including a facility capable of storing, blending, and loading crude oil, oil mixtures, and gas condensates with an annual capacity reaching 5.8 million tons.
Plans also incorporate the potential establishment of a storage repository, featuring both vertical and horizontal tanks, designed to receive, store, and distribute oil products and fuel oil up to a capacity of one million tons annually.
Furthermore, a specialized gas complex dedicated to shipping liquefied petroleum gas (LPG) will be developed, boasting a handling capacity for up to 650,000 tons of products per year.
