Russia and China finalized the $400 billion, 30 year agreement between the two countries for Russia to supply China with much-needed natural gas for the next three decades
According to the deal penned by Gazprom and the China National Petroleum Corporation, Russia will supply 38,000,000,000 cubic meters annually through a new pipeline linking the Siberian gas fields to China’s main consumption centers near its coastline.
The deal was witnessed by Russian Pres. Vladimir Putin and his Chinese counterpart Xi Jinping.
This massive natural gas deal has been over a decade in the making. But, the agreement was stalled primarily by a disagreement over the gas price.
Putin pushed through the deal after the crisis in Ukraine prompted European countries to reduce their reliance on Russian natural gas.
After the announcement of the Chinese/Russian deal, Gazprom shares jumped 2%.