China has sold $US1.2 trillion worth of assets to Russian companies in what some analysts believe is a sign the world’s second-largest economy is ready to give up control of the energy sector.
China’s state-owned oil company, Sinopec, sold $2.5 billion of its assets to the Russian energy giant Rosneft in September, which the U.K. also sold.
The sale of U,S.
government bonds and other assets to foreign governments, including Saudi Arabia, is a rare sign of China’s openness to selling assets abroad.
The moves come as Russia seeks to regain its reputation as a leading energy producer after a decade of decline.
Beijing is also trying to shore up its long-term strategic relationship with the United States.
But it is unclear how China is likely to sell the U-S.
debt or other assets at market prices as the two countries seek to deepen economic ties after years of frosty relations.
Russia’s Rosnefteas chief, Vladimir Chizhov, told Bloomberg News that Rosnefts debt will be repaid within 30 days, but he did not say when.
China is a buyer of American debt, but it has traditionally been more interested in buying foreign assets that have a proven track record.
RosneFts bonds have a yield of 2.8 percent, compared to 2.2 percent for the U.-S. Treasury.