Russia-China gas deal worth USD 400 billion over 30 years

(Beta/AP)

Russia-China gas deal worth USD 400 billion over 30 years

SHANGHAI -- Russia’s Gazprom and China’s CNPC have agreed on a deal on natural gas supplies to China, Itar-Tass is reporting.

The document was signed on Wednesday in the presence of Russian President Vladimir Putin and Chinese leader Xi Jinping.

Gazprom CEO Alexei Miller said that the contract has been concluded "for USD 400 billion for 30 years,"and that "the sides envisaged granting preferential mineral extraction tax regimes."

The price of gas stipulated in the document remains a "commercial secret," RT.com reported, and added:

"Assuming the overall price of the contract includes only the cost of supplies of Russian gas, then the USD 400 billion price tag means China will pay about USD 350 per 1,000 cubic meters."

Russian President Vladimir Putin was quoted as saying on Tuesday that "delivery price for the contract will be tied to market oil prices."

Speaking on May 17, Alexei Miller stated that the gas contract with China would be signed on conditions reasonable for Russia, and added:

“The contract as a document is completely ready. It is a very serious and extensive document. There is only one question - the so-called p-zero, the starting, base price in the formula, which is already completely negotiated with our Chinese partners. Therefore, a little is left: to put down just one figure. And a 30-year contract for supplies of 38 billion cubic meters of gas from Eastern Siberia to China will be signed."

“38 billion is just to start. We have agreed with our Chinese partners that as soon as we strike the deal upon the eastern route, we start talks on the western route. As regards the western...

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