BEIJING, September 3. /TASS/. New agreements on Russian pipeline gas supplies to China are beneficial to both countries, and neither side is giving anything away for free, President Vladimir Putin said at a press conference following his visit to China.
"There is no charity here on either side. These are mutually beneficial agreements. They are implemented on market principles, based on market principles that are developing in this region. By the way, the price for this product is also set not on the base of today's prices, but according to a certain formula," he said.
Putin recalled that energy demand is growing all over the world, including in China.
"We discussed this with our partners a long time ago. There were several routes, pros and cons to each one. And the negotiations lasted a long time, more than one year," Putin recalled, adding that ultimately, a deal was made.
Putin noted that the new agreements are market-based: the growing Chinese economy has needs, and Russia has the capacity to supply raw materials.
"This is simply the result of many years of work by economic entities on both sides," the President stressed.
On new gas agreements
Earlier, Gazprom CEO Alexey Miller announced the signing of a legally binding memorandum with China on the construction of the Power of Siberia 2 gas pipeline and the Soyuz Vostok transit gas pipeline through Mongolia. In addition, Gazprom and the China National Gas Corporation (CNPC) agreed to increase supplies via the existing Power of Siberia gas pipeline from 38 billion cubic meters of gas per year to 44 billion cubic meters.
Miller also said that the volume of supplies via the Far Eastern Route that grew from the planned 10 billion cubic meters per year by another 2 billion - to 12 billion cubic meters per year, will grow further. According to the plan, gas will flow through it in 2027.