Russia and China to settle gas trade in local currency
International Business News – Gazprom and China National Petroleum Corporation (CNPC) will instead settle gas supplies to China via the Siberian Power pipeline in rubles and yuan, the company announced in an announcement, TASS reported on September 6.
The announcement said: “During the meeting (between representatives of the two sides), a supplementary agreement on the purchase and sale contract for the supply of gas from the Eastern Line was signed. It was agreed to switch to settlement of Russian gas supplies to China in the local currencies of both countries – ruble and yuan.”
Gazprom head Alexei Miller noted that the introduction of the new payment mechanism was a mutually beneficial, timely, reliable and feasible decision, the report said. He said, “I think it will simplify the settlement, set a good example for other companies and give an additional impetus to our economic development.”
According to the report, Miller and CNPC executives also discussed the project to deliver Russian gas to China via the Far East route, which Gazprom has begun designing, as well as the progress of the Siberian Power 2 gas pipeline in Russia and the Eastern Alliance gas pipeline in Mongolia. The pipeline will connect the Russian and Chinese gas companies. These pipelines will connect the gas transportation systems of Russia and China.
Gazprom noted: “Alexey Miller informed about the current status of work on the Eastern Route – Siberian Power gas pipeline – gas supply project . The gas pipeline connecting the Kovikta field in Irkutsk Oblast with the Chayankin field in Yakutia is almost 100% complete. As planned, gas injection into the ‘Siberian Power’ pipeline will begin at the end of this year at the Kovikta field. This will enable Gazprom to ensure completion of its contractual obligations to expand gas supplies to China in 2023.”