China, Russia's Gazprom Sign Huge Gas Agreement

Russian President Vladimir Putin (right) and his Chinese counterpart Xi Jinping attend a gala concert in Shanghai on May 20.

Russia's state-controlled energy giant Gazprom has signed a long-awaited memorandum of understanding on a huge natural-gas deal with China.

The accord, announced on May 21, came on the sidelines of a visit to Shanghai by Russian President Vladimir Putin.

Gazprom chief Aleksei Miller is quoted as saying the gas supply contract with China is worth $400 billion over 30 years.

"This is Gazprom's biggest contract," Miller said. "Not one company has ever signed a contract like this."

But Miller refused to disclose the exact price for the gas, calling it a commercial secret.

The deal entails Russia supplying 38 billion cubic meters of gas per year to China via a new eastern pipeline linking the countries.

Russia and China have been working more than a decade on the deal, but a final agreement had been delayed due to price disagreements.
Based on reporting by ITAR-TASS, Interfax, AP, and Reuters