Russia, China fail to sign gas supply deal again

May 21, 2014

Russia and China are continuing negotiations on a long-debated gas supply deal, seeking a compromise, Gazprom CEO Alexei Miller said on May 20.

“Negotiations continue, the sides are searching for a compromise. The contract can be signed on a mutually beneficial basis,” Miller was quoted in a Gazprom press release as saying.

Russian President Vladimir Putin’s press secretary Dmitry Peskov earlier told reporters that Russia and China had reached significant progress on the issue of gas prices within the upcoming contract, although there still remained some issues for clarification and further improvement.

Previously, the tentative agreement between Gazprom and China National Petroleum Corporation has been delayed several times in the past over pricing disagreements.

The deal provides for gas deliveries amounting to 38 billion cubic meters per year via the eastern route to China, the largest market for Russian gas in the Asia-Pacific region. The contract is expected to be signed for a 30-year period and according to analysts is worth about $400 billion.

Russian President Vladimir Putin is currently in China for high-level talks with top Chinese officials. A large number of documents, including the gas supply deal, are expected to be signed during the Russian leader’s visit.

Copyright: RIA Novosti, 2014