Russia, China Disagree on Pricing for 30-Year Supplies
Despite the on-going negotiations, Russia and China failed to clinch an agreement for 38 billion cubic metres of gas per annum over a 30-year period. As reported by Reuters, the two countries did not agree on the price.
On the other hand, the Chinese Government released a note saying that President Xi Jinping and Russian president Vladimir Putin signed a joint statement ‘aimed at expanding cooperation in all fields and coordinating diplomatic efforts.’ The press release does not mention any problems in the negotiations, but intrinsically suggested that there are still some differences of opinion.
‘The two will work to ensure balanced trade, optimize trade structure and expand mutual investment in fields like transportation infrastructure, mining development, and housing projects in Russia,’ reads the note on the Chinese Government’s Official Web Portal.
According to the note, the two countries pledged to increase bilateral trade by more than 10% in the period 2013-2015, with the intention to duplicate it by 2020. The final aim is ‘200 billion U.S. dollars by 2020 from nearly 90 billion U.S. dollars last year.’
Experts expected the agreement on Tuesday, but chances are that the two parties could bridge differences on price later this week. That would help Russia, which is increasingly under pressure because of the sanctions and the financial arm-wrestling with some Western countries. Moscow is also called to invest in Crimea to solve the problems of the Russian region recently annexed.
In 2009 Gazprom and CNPC inked the Framework Agreement on the major terms and conditions of natural gas supply from Russia to China. The Agreement stipulates annual exports of up to 68 billion cubic meters of gas to the Chinese market. In 2010 the Extended Major Terms of natural gas supply from Russia to China were signed.
In September 2013 Gazprom and CNPC inked the Agreement on the major terms and conditions of pipeline gas supply from Russia to China via the eastern route.
The two companies are holding negotiations to step up bilateral cooperation over the last decade.