Russia and Vietnam Sign Framework Agreement on Strategic Oil Storage

The Russian oil and gas company Zarubezhneft has signed a framework agreement with Vietnam’s state energy firm Petrovietnam to?cooperate in a project?to establish a strategic reserve of oil in Vietnam.

The agreement was signed by the Vietnamese leader To Lam during his state visit to Russia.

The companies did not reveal a timetable for the project or the potential size of a strategic oil reserve. The financial terms of the deal were not disclosed either.

In remarks made after the meeting, Russian President Vladimir Putin stated that "the?Russians have proposed to?their partners the idea of jointly creating strategic fuel reserves in Vietnam."

The energy cooperation between Moscow and Hanoi has been the key focus of their ties.

According to the Vietnamese government, in March, Vietnamese PM Pham Minh Chinh asked Zarubezhneft if it would increase its investment?in?Vietnam?and provide long-term crude oils to the Southeast Asian country.

Alexander Novak, the Russian deputy prime minister, said in June that Moscow was ready to help Vietnam create a strategic oil reserve.

(source: Reuters)