Russia to supply gas to China at European prices

On May 20th , during Vladimir Putin's visit to Shanghai for participation in the Conference on Interaction and Confidence-building Measures in Asia, the long-awaited contract on supply of 38 billion cubic meters of gas per year for 30 years to China may be signed. Contrary voiced forecasts of significant discounts for China, the final price of fuel will be "at about the average European level " - that is about $350-380 per thousand cubic meters, a source in Gazprom reported to the Izvestia. Thus, Russia will be able to get about $400 billion.

The source says that the company’s head Alexei Miller faces a task "to coordinate only one figure" - and it is planned to do during negotiations of the gas holding company’s head with his colleague of Chinese CNPC on Monday. Stands of the parties "are very close to each other", the Izvestia’s source notes: he appreciates the chance to come to an agreement. The Gazprom’s CEO Alexey Miller specified in interview to the Vesti on Saturday that the parties agreed in everything except the initial, basic price in the pricing formula. Moreover, the pricing formula itself has been coordinated with the Chinese partners.