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Energy trade between Russia and China rises by 64% in monetary terms

Payments for supplies of oil and petroleum products are also being proactively shifted to national currencies of Russia and China

MOSCOW, November 18. /TASS/. Trade turnover between Russia and China in the energy sector increased by 64% in monetary terms and by 10% in physical terms, Russian Deputy Prime Minister Alexander Novak said on Friday.

"China as our strategic partner in the Asia-Pacific region and in our trade in general. Our trade turnover in the energy sector has increased dramatically, rising by about 64% in monetary terms. In physical terms, oil and gas supplies, as well as coal and electricity supplies increased by around 10%," he said.

The government noted in a press release that Novak stressed that relations between Russia and China are not influenced by external market changes and based on common fundamental interests and deep mutual trust and respect.

At the same time, Russia and China are expected to sign an intergovernmental agreement on gas supplies to China over the Far Eastern route in the near future, Novak said in an interview with Rossiya 24 TV channel.

"The agreement was signed between Gazprom and the China National Petroleum Corporation on supplies of ten bln cubic meters of gas more over the Far Eastern route. We are to reach signing of an intergovernmental agreement shortly -this is the project that will be in the future," Novak said.

The two countries continue talks on implementation of the project for gas supplies over the Power of Siberia 2 gas pipeline, the official said. "This gas will flow over the territory of Mongolia to China. This a new large-scale project with the capacity up to 50 bln cubic meters of gas," he added.

The two countries are also switching to payments in national currencies for deliveries of energy resources. "We are shifting to payments in national currencies -in rubles and in yuan - for supplied energy resources, to mutual settlements performed in particular for supplies of equipment from China," Novak said. "As an example, gas supplies at present between Gazprom and the People’s Republic of China are made on a parity basis in rubles and in yuan," he added.

Payments for supplies of oil and petroleum products are also being proactively shifted to national currencies of Russia and China, Novak added.

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