China, Russia sign $400b gas deal

SHANGHAI, China, May 21 (AFP): China and Russia signed a monumental, multi-decade gas supply contract in Shanghai on Wednesday, Chinese state energy giant CNPC said, with reports saying it could be worth as much as $400 billion.
The contract signatures came after years of negotiations and were witnessed by Chinese President Xi Jinping and visiting Russian leader Vladimir Putin, CNPC said in a statement.
"This is another major milestone achievement in China-Russia energy strategic cooperation," it said, adding it was "facilitated and greatly supported personally by the leaders of China and Russia".
Russia has vast energy reserves and China is constantly seeking resources to power the growth of its economy, but the neighbours had been unable to agree a price for years.
Nonetheless Moscow has in recent years been seeking to unlock new energy markets in Asia, and now faces a fresh confrontation with the West over Ukraine.
Russian reports cited Alexei Miller, the chief of Russia's energy giant Gazprom, as saying the gas deal was worth $400 billion over its full term.
No confirmation was immediately available on the pricing of the deal.
Under the 30-year contract between CNPC and Gazprom, 38 billion cubic metres could eventually be sent annually from Russia to China, the CNPC statement said.
But the amount is just over half the 70 billion cubic metres envisaged under a 2009 framework agreement between the two.