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Gazprom CEO hopeful China’s gas contract price suitable for Russia

"We have entered the final stage of negotiations", Aleksei Miller said

© EPA/SERGEY DOLZHENKO

PETROPAVLOVSK-KAMCHATSKY, May 17, 15:17 /ITAR-TASS/. Aleksei Miller, the CEO of Russia’s major gas company Gazprom feels confident the gas contract with China will be signed under the conditions suitable for Russia.

Speaking in the Vesti v Subbotu (News on Saturday) TV programme, Miller said: “Anyway, we have entered the final stage of negotiations. The contract, as a document, is fully accomplished as it is a serious and meaty document.”

“There remains only one item - the so-called basic or zero price in the formula that has been already agreed on with our Chinese partners,” he said. “We are almost there as only one digit is to be inserted [in the contract] and the 30-year contract will be finalised on the 38 bcm-gas flow from Eastern Siberia to China.”

Miller said “these 38 bcm are just a beginning. We’ve come to an agreement with China that as soon as we put signatures under the eastern route contract, the talks on the western route are opened.”

“The western route has one but principal difference regarding its resource base as it’s the same base we supply gas to Europe from. Nevertheless, reserves of gas are sufficient and the resource base is giant,” Miller said. “So we can provide a considerable amount of gas to China as well, and these volumes will compare with the volumes of European supplies in the medium term.

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