Putin ratified gas supply agreement with China

Russian President Vladimir Putin ratified an agreement on natural gas supplies to China. The relevant law was published on the legal information website on Saturday, May 2. Deliveries will be carried out along the “eastern” route. Previously, the law was adopted by the State Duma and approved by the Federation Council.

In October 2014 of the year during the visit to Russia of the Premier of the State Council of the People's Republic of China Li Keqiang was signed agreement related to a 30-year gas supply contract worth $400 billion that was concluded in May of that year. Then the Chinese national oil and gas corporation CPNC and the Russian Gazprom agreed on a project for gas supplies to China. In September, Gazprom began construction of the Power of Siberia gas pipeline. The head of the concern said that construction work would take no more than six years.

Disputes around prices

Earlier, Deputy Head of the National Energy Security Foundation, Alexey Grivach explained to the Russian service of the BBCthat the calculation formula was agreed in advance, however, the parties could not determine for a long time the constant value on the basis of which further calculations would be made.

According to the analyst, the price of 350-400 dollars per thousand cubic meters was discussed at the talks.

As for the start of deliveries, usually five years have passed since the signing of the contract, another two or three years are required to reach the design capacity.

The framework supply agreement between Gazprom and the Chinese CNPC was signed in 2009.

It provides for the supply to the PRC of 38 billion cubic meters of Russian gas per year.

In March, 2013, Gazprom and CNPC signed a memorandum of understanding on the project of pipeline supplies of natural gas to China via the “eastern” route.

The head of Gazprom, Alexey Miller, said at the time that supplies of Russian fuel to China could be advanced.