Gazprom and China National Petroleum Corporation (CNPC) have agreed to peg the price of the gas that Russia supplies to China in the future to the price of the Asian oil basket, Russian Prime Minister Vladimir Putin told reporters.
“Agreement was reached yesterday evening between Gazprom and the Chinese corporation that the price of gas for China will be pegged to the Asian oil basket,” Putin said.
“There are some specific aspects to this issue, but by and large the issue of calculating the price formula has been decided,” Putin said.
Putin also said gas exports to China via the Eastern and Western routes might be synchronized.
Regarding supplies via the Western route, he said “that problem could be solved before 2015.”
Supplies from the East Siberian fields could begin from 2015, he said. “But if necessary, the Eastern and Western routes could be synchronized – it’s all a matter of contracts,” Putin said.
Putin also said Russia might consider payments for the gas supplied to China in rubles.
“We have talked about this possibility with China, and our energy companies have raised this issue, for example Gazprom,” he said.
“We could consider this, but this does not mean our Chinese partners have to have rubles. We’re prepared to accept payment for yuan, but a balance would be needed,” he said, adding that the issues would be dealt with at expert level. The next meeting of Shanghai Cooperation Organization finance ministers will look at an initiative by Kazakhstan to institute electronic settlements in national currencies, he added.
