Reuters sources said the reason for the halt was due to China’s skepticism about its own companies resisting Russian sanctions imposed by the West. Although the petrochemical deal was not named, Reuters sources said it was in the process of selecting a site and was supposed to be similar in size to the $ 10 billion Amur gas complex in Siberia. Amur is a joint venture between Sinopec and Russian Sibur. The new investment – which was also an agreement with Sibur – was estimated at $ 500 million for a chemical plant. Sinopec reportedly broke off talks when it realized that one of Sibur’s minority shareholders and board members, Gennady Timchenko, had been sanctioned by the EU and Britain over its ties to Russian President Vladimir Putin. Timchenko was also on Novatek’s board until Monday, when he resigned. Russia is China’s second largest oil supplier and third largest gas supplier. Sinopec did not comment on its plans. The Amur project is also in jeopardy, as funding sources in Russia, including Russia’s state-owned Sberbank, are also limited by sanctions. Sibur denied that a new project with Sinopec similar to Amur was underway. He said, however, that Sibur continues to work with Sinopec on the Amur project. “Sinopec is actively involved in the construction management of the project, including equipment procurement, cooperation with suppliers and contractors. We are also working together on project financing,” Seibour told Reuters. China’s Foreign Ministry recently met with Sinopec, CNPC and CNOOC – its three energy giants – to review its ties with Russia. Reuters sources said that these companies have been asked to carefully monitor their dealings with Russia and not to make hasty moves to buy Russian assets. By Julianne Geiger for Oilprice.com More top readings from Oilprice.com:
