Russia, China Agree on Gas Pricing

Moscow and Beijing have agreed on a price formula for Russian gas exports and a deal is in the offing, RIA Novosti quoting an official of Russian gas monopoly Gazprom said on Tuesday.

Prices of the gas, which has remained the biggest stumbling block before formal signing of a deal between the world's largest gas producer and the world's fastest-growing energy market, are yet to be finalized though, the official conceded.

"Once the pricing formula is agreed, the issue of what is the starting point of that formula still remains to be solved," Gazprom Deputy Chairman Alexander Medvedev said.

Gazprom had been pressing hard for the same returns on deliveries to China as to Europe, which meant a price gap of at least $100 per thousand cubic meters between Gazprom and China's negotiating positions.

"We hope very much that the event expected by everyone - the signing of the contract to supply gas - is in the offing," Medvedev said, but did not elaborate.

Negotiations between the two sides were constructive and the parties listened to each other, he said.

Talks over what could be a massive energy deal have been going on since the two sides signed a framework agreement in 2009. Meanwhile, China has been diversifying its sources of supply.

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