"Beijing knows that Russia needs them more than they need Russia". Alexey, what makes you think so? I am not saying that you are necessarily wrong. I may be just missing something. But, I think, that it is quite opposite -- this deal benefits China more than Russia. I want to clarify, though, that I am talking about long term. See, in the Western type political system (which Russia borrowed some time ago as well) the government is living and thinking by short terms. And such government -- politicians, who are doing their best just to climb the Hill and stay on the top of it during their term. You cannot blame them, though, -- they may stay there only until next elections and then they will be gone (replaced). No matter how effective and successful they are. This is the price the Western society has to pay for having democracy. China, in contrary, with their Communist system, is free from this every-day debates and elbow-pushing activity about who will be the next party or group of people taking the power. Therefore, the Chinese government, like an owner of an enterprise, may focus on the long-term strategic goals. Such type of government could be considered as a virtual businessman rather than a politician. Such government is a real and very powerful Capitalist. Such government cares about country much more than the Western type government. For the reasons I mentioned above. And this is the "price" which is paid for the "lack" of democracy in China. So, while I may agree with you, that currently (short term, or tactically) Russia, probably, needs China more than China needs Russia, in the long run (or strategically), though, the situation looks completely the way around. Russia has enormous resources. Russian land holds them for million years and they are not disappearing unless they are taken. And their value is never diminished. Actually, it is rising. China, from the other hand, with its huge population and surging economy, is rapidly depleting their own resources. And very soon, they will start desperately looking for them outside of the country. Very similar to Japan. The question is -- where Chinese will go? Middle East? It is already a very hot spot. And don't forget that India may join this energy hunters as well. So, it will be an even hotter place. There are two other regions -- Russia and Central Asia. This is where the next battlefield will be. Note, that I am not talking about oil only. Kazakhstan for example, is one of the richest places on Earth when it comes to the metals and minerals of any kind. And one of the top places rich with Uranium. By the way, Russia very foolishly lost this land, even though Kazakhstan badly wanted to stay with Russia in one union. What I am saying -- Chinese government is smarter than Russian's. They look forward and plan for decades ahead. The end result of such cooperation (unless Russia will do something to compensate the "Chinese push") -- the Eastern Siberia and Russia's Far East will belong to Chinese. May be not formally, but, surely, factually. I would strongly recommend to the Russian government to make a green light for American and Indian businesses in those regions. As soon as possible.

"Sino-Russian energy relations – a step in the right direction" Very good analysis , thank you!

The deal benefits both countries. For Russia more customers it has then better. For China more suppliers they have then better. Europe is set to lose. For too long they were playing anti Russian games with delaying trade talks. Seems like Europe do not understand that the resource this planet has are limited. Europe is not acting in its own interest and will fall further into American slavery.