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MOSCOW, December 18. /TASS/. Russia’s gas contract with China is not a loss-generating deal and is indispensable for gas infrastructure development in the Russian Far East and Siberia, President Vladimir Putin said on Thursday.
“Both sides (to the contract) have provided privileges for the contract. The government of China has decided that it will offer certain privileges to participants in the process. On our part, we have also made a decision on granting certain privileges,” Putin said.
“The project has undoubtedly become profitable, all the more so as we have agreed on the price formula. This formula differs little, if it differs at all, from the formula we use relative to Europe but takes into account the ratios linked with the market of that region of the world,” Putin said.
“This will allow Russia not simply to build an export pipe but also start gas infrastructure development of the Far East while receiving and concentrating huge resources at the initial stage of this project. This will help us make yet another important step — to connect the western and eastern gas pipeline systems and have a possibility to redirect resources from East to West and from West to East when it is advantageous from the viewpoint of the world market situation,” Putin said.