Russia, China Ink USD 400 Bln Worth Gas Delivery Deal
After a decade of negotiations Russia and China have finally signed a deal for Gazprom to deliver its gas to China and it is estimated to be worth over $400 billion.
According to BBC News, the agreement signed at a summit in Shanghai sees Russia deliver some 38 billion cubic meters of natural gas a year eastward to China, starting around 2018.
Russia was looking to expand their market and turn towards East due to the Ukrainian crisis.
Reuters reports that a major stumbling stone might be China’s inability to pay a lump sum upfront in order to cover infrastructure costs and that part of the deal is yet to be resolved.