Sino-Russky Oil Deals Under-Reported

I think this story about the multi-billion dollar sale of Yukos Oil to an unknown buyer deserves more investigation my world media. A few of them are poking around the edges, but the story — Putin hints at China alliance for Yukos oil — by Financial Times caught my eye:

Yegor Gaidar, Russia’s most prominent liberal economist and a former acting prime minister, said: “If one accepts that the government has any strategy in regard to Yukos, a joint venture with China signifies a long-term change of focus towards Asian markets.”

Mr Putin did not say who owned Baikal Finance Group, which last weekend bid $9.35bn (£4.85bn) for Yuganskneftegas. However, he said behind it stood a “group of individuals with experience in the oil sector”.

The backstory is that Yukos Oil was riddled with fraud and bilked investors out of millions of dollars, and now it it being sold to an unknown company, and suddenly there are strong ties between Russia and China. I’d bet dollars to donuts that the company buying the assets of Yukos is a front for the Chinese government.

There’s a real rush going on in the world right now between Russia, China and the US (and the EU to a lesser extent) to secure oil sources and strategically position themselves as the controller of this resource.

UPDATE: Looks like the Russian state-owned Rosneft has now bought the Yukos assets from the shell company, BaikalFinansGroup. Could this have been a power play by China that was thwarted by Russian government insiders? I’m just trying to keep the names straight myself, why are Russian company names so damned complicated?

Stephen VanDyke

I've published HoT along with about 300+ friends since 2002. We're all Americans who are snarky and love our country. I'm a libertarian that registered Republican because I like to win elections. That's pretty much it.

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