ENERGY-hungry China gained its first stake in a Russian oil field last week, signalling a reversal in the Kremlins attitude to its long-time rival and launching Russias new energy partnership policy.

The Kremlin has rebuffed Chinas last two attempts to buy a Russian oil company. In 2002 Beijing agreed to back out of an auction for Russias second biggest state-owned oil company, Slavneft, after pressure from Moscow.

But after years of reticence, the Kremlin has reversed its policy of blocking Chinese investments into its strategically important energy sector .

Sinopec will pay an estimated $1.5-$2bn for the 49% of Udmurtneft that belongs to the Russian-British joint venture TNK-BP. The deal marks the start of a stregic partnership with the Russian government, as state-owned company Rosneft will buy the remaining 51%.

The deal highlights Rosnefts increasingly dominant position in the Russian energy sector only weeks before its controversial initial public offering (IPO), in which is hopes to raise $14bn.

It also adds to speculation the Chinese will rescue the troubled flotation from possible disaster by buying a stake; international investors are unlikely to pay the steep premium Rosneft is demanding for its shares after Yukos, which is trying to recover Yuganskneftegaz, promised a lifetime of litigation.

This is not the first time Rosneft has turned to the Chinese for help: Chinese banks hastily arranged a $6bn loan for Rosneft in early 2004 to pay for Yuganskneftegaz.

The deal is seen as a model for the Kremlins new energy partnership policy. The Kremlin is dangling access to Russias treasure trove of raw materials in exchange for help developing its economy.