China and Russia Fail to Sign Long Awaited Gas Deal

Russia and China will not sign a long-awaited contract at the St Petersburg International Economic Forum, the deputy chief executive of Gazprom, Alexander Medvedev said on Friday.

"We are not going to sign anything this time," Medvedev said on the sidelines of the forum.

President Dmitry Medvedev said on Thursday that two countries were finalizing talks on the price of gas under a 30-year supply contract, which could amount to $1 trillion in value.

The contract, under which Gazprom was to deliver up to 68 billion cubic meters of gas from Siberia to China, was expected to be signed at the forum, which Dmitry Medvedev and Chinese leader Hu Jintao opened on Friday

Discussions between Gazprom and China National Petroleum Corporation have been protracted, with China seeking a price arrangement that sets a tariff lower to the price at which Gazprom sells gas to Europe.

A deal with China would form an important part of Gazprom’s strategy to diversify exports away from Europe.

Source: RIA Novosti