Russia and Congo Republic Seal Major Oil Pipeline Deal
Russian President Vladimir Putin has ratified a groundbreaking agreement with the Republic of the Congo for the construction of a major oil pipeline, marking a significant expansion of Russia’s energy partnerships in Africa.
The agreement, officially titled “Federal Law On Ratifying the Agreement between the Government of the Russian Federation and the Government of the Republic of the Congo on Cooperation in Building the Pointe-Noire — Loutete — Maloukou-Trechot Oil Pipeline,” was posted to the Kremlin’s official website on June 7, 2025.
Under the deal, authorized organizations Zakneftegazstroy-Prometey LLC and the National Petroleum Company of the Congo will create a joint venture with Russia holding a commanding 90% stake and Congo maintaining 10%. The pipeline construction is expected to be completed within three years, with overall operations planned for 30-40 years.
Russian Deputy Energy Minister Dmitry Islamov highlighted the strategic importance of the project, stating it will enable Congo to ensure uninterrupted petroleum product supplies to the capital region while reducing logistics costs. For Russia, the deal means expanding high-tech exports and creating an additional sanctions-resistant petroleum products distribution channel.
The main pipeline will connect the largest cities of the African nation, running between Pointe-Noire and the capital Brazzaville. A concession agreement will be concluded in the build-own-operate-transfer (BOOT) format, with the joint venture operating the pipeline for 25 years under a guaranteed tariff structure.
The agreement also establishes that dispute resolution will take place in Dubai through the Dubai International Arbitration Centre, reflecting the international scope of this energy infrastructure project.
Source: Eurasia Review
