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China and Russia Sign Natural Gas Deal

Beijing and Moscow said they signed a much-anticipated contract to supply China with hundreds of billions of dollars worth of Russian natural gas following a decade of difficult talks. Neither side released details about the price, long the major sticking point of a deal. The two sides but said a final price would be negotiated later. Gazprom CEO Alexei Miller told Russian media that the two sides had signed a contract worth a total of $400 billion over its 30-year life. "This is Gazprom’s biggest contract. We don’t have a contract like this with any other company," Mr. Miller told reporters in Shanghai, the Interfax news agency reported. Russian news agencies said the contract called for supplies of 38 billion cubic meters of gas a year, which would imply a price of about $350 per thousand cubic meters, at the low end of what Gazprom currently charges export clients. […]

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China and Russia Reach 30-Year Gas Deal

China and Russia signed a $400 billion gas deal on Wednesday, giving Moscow a megamarket for its leading export and linking two major powers that, despite a rocky history of alliances and rivalries, have drawn closer to counter the clout of the United States and Europe. The impetus to complete the gas deal, which has been talked about as a game-changing accord for more than a decade, finally came together after the Ukrainian crisis forced Russia’s president, Vladimir V. Putin, to urgently seek an alternative to Europe, Moscow’s main energy market. Europe has slapped sanctions on Russia and sought ways to reduce its dependence on Russian energy. Mr. Putin, on a two-day visit to Shanghai, and the Chinese leader, Xi Jinping, oversaw the signing of the contract between Gazprom and the China National Petroleum Corporation, the biggest natural gas deal Russia has sealed since the collapse of […]

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China, Russia ink long-awaited gas deal

China and Russia on Wednesday inked the long-awaited gas deal in Shanghai, ending the decade-long natural gas supply talks between the two neighbors. The deal came one day after visiting Russian President Vladimir Putin said that "significant progress" had been made over the price in the lengthy talks. Two documents, China and Russia Purchase and Sales Contract on East Route Gas Project and a memorandum, were signed at a ceremony attended by Chinese President Xi Jinping and Russian President Vladimir Putin. Over the past years, talks, which started in 2004, have stalled over price. The gas supply deal was signed on the sidelines of the fourth Summit of the Conference on Interaction and Confidence Building Measures in Asia, a regional security summit which Putin and Xi are attending. China and Russia have vowed to strengthen cooperation in energy and infrastructure in Russia. According to […]

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China Signs Non-Dollar Settlement Deal With Russia’s Largest Bank

Slowly – but surely – the USD’s hegemony is being chipped away whether by foreign policy faux pas, crossed red-lines, or economic fragility. However, on Day 1 of Vladimir Putin’s trip to China it is clear that the two nations are as close as ever. VTB – among Russia’s largest banks – has signed a deal with Bank of China to pay each other in domestic currencies, bypassing the need for US Dollars for “investment banking, inter-bank lending, trade finance and capital-markets transactions.” Kirill Dmitriyev the head of Russia’s Direct Investment Fund notes, “together it’ll be possible to discuss investment in various projects much more efficiently and clearly,” as Russia’s pivot to Asia continues to gather steam. As RT reports , Day 1 for Putin is going well… VTB, Russia’s second biggest lender, has signed a deal with Bank of China, which includes an agreement to pay each other […]

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China to delay Russia gas deal in blow to Vladimir Putin

China will not reach an agreement to import natural gas from Russia’s during a state visit by President Vladimir Putin this week despite strenuous Russian efforts to secure what has been portrayed as a key test of closer Sino-Russian ties. As Moscow’s relations with the West have deteriorated over the crisis in Ukraine, Mr Putin has sought to show the world and the Russian people that he has alternative friends to the east. Russian media, officials and Mr Putin himself have repeatedly said the 30-year, $456bn deal would be signed during the president’s visit to Shanghai, which ends on Wednesday evening. But PetroChina , the listed subsidiary of state-owned China National Petroleum Corp, China’s largest oil company, told the Financial Times on Wednesday that the deal would not be signed on this visit. “We won’t be signing [on this visit],” said Mao Zefeng, spokesman for PetroChina. “At the moment […]

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Russia, China Vow to Reach a Gas Deal

The leaders of China and Russia pledged to deepen energy ties during the first day of a state visit by President Vladimir Putin but failed so far to reach a final agreement to pipe Russian gas to China, signaling that disagreements over price remain an obstacle to the long-stalled deal. Officials from both countries have raised expectations that a deal could finally come together during Mr. Putin’s visit this week to Shanghai, where he and China President Xi Jinping are participating in a regional security conference. The prospect of exporting Russian natural gas to energy-hungry China has been under consideration for years, but pricing has served as a major barrier. Following their meeting on Tuesday, the Chinese and Russian leaders signed a joint statement calling for Russian gas supplies to begin being exported to China as quickly as possible, according to China’s official Xinhua news agency. Mr. Putin will […]

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Russian, Chinese gas deal is 'massive,' energy minister says

A "massive" contract in the works for Chinese energy has nothing to do with challenges in the European gas sector, Russia’s energy minister said Tuesday. Russian Energy Minister Alexander Novak said the Kremlin aims to sign sweeping oil and natural gas contracts with China. In an interview the Russia-24 TV channel, he said bilateral economic initiatives with Beijing are part of a broad agenda. "That is why we sign these massive contracts to supply gas, oil, construct infrastructure pipelines — they lay the foundation not for the present day, and neither it is associated with the situation around the European partners today," he said . "This is due to the development of relations with Asia-Pacific countries in general, with such key partners as China." Russian President Vladimir Putin is putting the final touches on a contract with China that envisions natural gas deliveries and associated […]

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Russian, Chinese gas deal is ‘massive,’ energy minister says

A "massive" contract in the works for Chinese energy has nothing to do with challenges in the European gas sector, Russia’s energy minister said Tuesday. Russian Energy Minister Alexander Novak said the Kremlin aims to sign sweeping oil and natural gas contracts with China. In an interview the Russia-24 TV channel, he said bilateral economic initiatives with Beijing are part of a broad agenda. "That is why we sign these massive contracts to supply gas, oil, construct infrastructure pipelines — they lay the foundation not for the present day, and neither it is associated with the situation around the European partners today," he said . "This is due to the development of relations with Asia-Pacific countries in general, with such key partners as China." Russian President Vladimir Putin is putting the final touches on a contract with China that envisions natural gas deliveries and associated […]

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Russia wants relief from EU roles on gas operations

Operating Germany’s Opal gas pipeline at 100 percent would address regional transit issues for Europe and Gazprom alike, Russia’s energy minister said Tuesday. "It would be rational if the European Commission granted permission for full load of Opal, in the context of improving assurance guarantees [for the supply of gas] to European consumers," Russian Energy Minister Alexander Novak said . Russian President Vladimir Putin he was optimistic the pipeline would run at full capacity after he met in Brussels with members of the European Union. The pipeline connects to the Nord Stream system through the Baltic Sea and can carry 1.2 trillion cubic feet of natural gas per year. European regulations regarding gas monopolies mean the pipeline operates at about half that capacity. Novak said it was be a "rational" decision for the European Commission to extend a waiver for the German pipeline system. "Though […]

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Putin sees China as logical gas partner

Russian President Vladimir Putin said Monday from Shanghai that a stronger energy relationship with China would provide mutual benefits. A 2009 framework agreement between Gazprom and China National Petroleum Corp. calls on the Russian company to export as much as 2.4 trillion cubic feet of natural gas to the Chinese market each year. Both sides have discussed options for building a natural gas pipeline to enhance deliveries. "For Russia, implementing these agreements means diversifying gas supply destinations, while for our Chinese partners … it could be a remedy for energy shortage and helps ecological security," he told China’s official Xinhua News Agency. Formal natural gas deals, he said, are in their final stages. Putin is expected to spend two days on a state visit to Beijing this week. Alexei Miller , the top executive at Russian energy company Gazprom, met Sunday in Beijing with Zhou […]

Posted On : Published By : Tom Whipple