WSJ: Why China is Driving a Hard Bargain with Russia Over Gas

Russian President Vladimir Putin’s state visit to China this week has fueled speculation that both sides will finally reach a deal to supply Russian natural gas to China after a decade of wrangling.

There are plenty of reasons Beijing and Moscow will finally see eye to eye. But an analysis of the situation shows they still have plenty of room to disagree.

China and Russia have signed non-binding agreements before — most notably in 2009 and in 2013 — where they ironed out details that included the construction of a pipeline to ship 38 billion cubic meters of gas annually to China from fields in eastern Siberia. However, neither side has ever agreed on pricing.
MORE