The contract on the supply of Russian gas to China is concluded

Gazprom has managed to reach an agreement with China on gas supplies after ten years of negotiations. The company achieved a relatively good base price of about $380 per 1 thousand cubic meters that coincides with the current prices for Europe. However, issue of advance payment and the source of $55 billion investment in Russian infrastructure and the resource base remains uncertain. The latter can create additional difficulties for Gazprom that can lead to the participation other gas producers, especially Rosneft, in the project.

Yesterday, Gazprom and China's CNPC signed a gas supply contract in the presence of the two countries’ heads; the negotiations on this contract was started by the parties back in 2004. According to Gazprom’s head Alexei Miller, the total value of the 30- year contract will be $400 billion.