No Agreement Between China-Russia Natural Gas Deal

Published Date : May 15, 2014

Despite years of negotiations, Russia and China are still disagreeing over pricing a multi-billion dollar gas deal, said a senior Beijing official on Tuesday. This was put up ahead of a visit paid by Vladimir Putin on an expected contract signature. 

In addition, the Russian President is planning to visit the commercial hub of Shanghai on two days Tuesday and Wednesday for an organized conference based on Asian security hosted by Chinese President Xi Jinping. 

The two countries for years have sought to reach a noble agreement on the deal for Russia to supply China with natural oil and gas (fuel) to its economy. 

This is the world’s second largest economy. This agreement has created a rift in the European markets for Russia. They face criticism and sanctions by the West for its Ukraine market, including its seizure of the Crimea peninsula. 

China’s Vice Foreign Minister Cheng Guoping is in the constant efforts of trying to make this contract work out and get it signed and witnessed by the two presidents during President Putin’s visit to China. 

He added that the negotiating companies had reached a certain agreement on many issues; however, the issue over the price of natural gas still lingers on. The two firms involved in this are China National Petroleum Corp. (CNCP), and Russian gas giant Gazprom. 

Earlier framework agreement said Russia would pump 38 billion cubic meters of gas to China, and raise it up to 70 billion cubic meters. This bilateral meeting between Putin and Xi has threatened to dominate the Conference on Interaction and Confidence Building Measures in Asia (CICA) says analysts. 

Furthermore, Shanghai has planned and developed its security on starting armed police patrols and running searches on passengers at the city’s two airports from the threat of explosives this week.