Chance of Russia, China Gas Deal Slim During Xi's Visit

Prospects are dim for a Russia-China pipeline gas deal this week during a visit to Moscow by China's new president, Xi Jinping, as each side remains unmoved by the other's demand for price concessions, Reuters said citing gas industry sources.

"We expect that our positions will converge on the contract terms," Gazprom spokesman Sergei Kupriyanov was quoted as saying. "We are not preparing to sign anything."

Two parties have failed to ink a gas supply deal because of Russia’s reluctance to cut prices.

A Russian gas industry source said the Chinese price position remained fixed at $250 per thousand cubic meters, while Gazprom's price demand hovered around $300, although its hand has been weakened by falling prices around the world in the wake of the U.S. shale revolution, Reuters news report added.