Russia, China Gas Deal Expected Next Week

Russia and China will most likely sign the much delayed gas supply deal during President Vladimir Putin during his visit to Beijing on May 20, according to RIA Novosti.

Russian Deputy Energy Minister Anatoly Yanovsky on Monday said that a contract on delivering gas to China was 98 percent ready.

The supply agreement between Gazprom and China National Petroleum Corporation (CNPC) has been delayed several times over pricing disagreements.

According to RIA Novosti the project envisages the construction of a new Russian pipeline to China, the completion of which has been delayed by Gazprom to 2020 from 2018.

The current standoff between Russia and the EU over Crimea is likely to give an impetus to Moscow’s long-awaited deal on exporting up to 60 billion cubic meters of gas per year via the eastern route to China, adds RIA Novosti.