This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.nytimes.com/2014/05/22/world/asia/china-russia-gas-deal.html
The article has changed 9 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| China and Russia Are Said to Reach Major Gas Deal | |
| (35 minutes later) | |
| BEIJING — China and Russia agreed to a major natural gas deal Wednesday that would send gas from Siberia by pipeline to China, according to the state-run news agency, Xinhua. | BEIJING — China and Russia agreed to a major natural gas deal Wednesday that would send gas from Siberia by pipeline to China, according to the state-run news agency, Xinhua. |
| But it was not immediately clear if the accord was an actual contract with details of prices and terms, or if it was a memorandum of understanding that would signal the need for further negotiations. | But it was not immediately clear if the accord was an actual contract with details of prices and terms, or if it was a memorandum of understanding that would signal the need for further negotiations. |
| There were high expectations that the deal would be sealed when President Xi Jinping and the Russian leader, Vladimir V. Putin, met in Shanghai Tuesday. But those hopes were dashed when negotiators from the China National Petroleum Corporation and Gazprom, the Russian energy company, failed to reached an agreement on pricing. | There were high expectations that the deal would be sealed when President Xi Jinping and the Russian leader, Vladimir V. Putin, met in Shanghai Tuesday. But those hopes were dashed when negotiators from the China National Petroleum Corporation and Gazprom, the Russian energy company, failed to reached an agreement on pricing. |
| The $400 billion deal for a 20-year supply of natural gas has been under discussion in various forms for nearly a decade. China has been bargaining hard to lower the price, and Russia, which provides Europe with much of its natural gas, has been wary of conceding to a price much lower than what European countries pay, industry experts said. | The $400 billion deal for a 20-year supply of natural gas has been under discussion in various forms for nearly a decade. China has been bargaining hard to lower the price, and Russia, which provides Europe with much of its natural gas, has been wary of conceding to a price much lower than what European countries pay, industry experts said. |
| “If it is not a gas contract and just a memorandum of understanding that would be a disappoint,” said James Henderson, senior analyst with the e Oxford Institute for Energy Studies in Britain. “We’ve had MOUs before.” | “If it is not a gas contract and just a memorandum of understanding that would be a disappoint,” said James Henderson, senior analyst with the e Oxford Institute for Energy Studies in Britain. “We’ve had MOUs before.” |
| While commercial considerations were the most important, the growing political alignment between Russia and China appeared to be a catalyst that would push the deal toward the finish line, experts said. | While commercial considerations were the most important, the growing political alignment between Russia and China appeared to be a catalyst that would push the deal toward the finish line, experts said. |
| Mr. Putin has been eager to diversify Russia’s gas sales to Asia and away from stagnant European markets. At the same, he was anxious to demonstrate that Russia, in the face of sanctions over the annexation of Crimea, was not dependent on the West. | Mr. Putin has been eager to diversify Russia’s gas sales to Asia and away from stagnant European markets. At the same, he was anxious to demonstrate that Russia, in the face of sanctions over the annexation of Crimea, was not dependent on the West. |
| And Mr. Xi, who has met Mr. Putin seven times since assuming power, was willing to help the Russian leader, said Shi Yinhong, a professor of international relations at Renmin University in Beijing. | And Mr. Xi, who has met Mr. Putin seven times since assuming power, was willing to help the Russian leader, said Shi Yinhong, a professor of international relations at Renmin University in Beijing. |
| Another sticking point has been how China would finance the pipeline that needs to be built to carry the gas from eastern Russia to China, experts said. The Chinese were also asking Gazprom for equity in the gas fields, something that Gazprom had not granted to other customers, Mr. Henderson said. | Another sticking point has been how China would finance the pipeline that needs to be built to carry the gas from eastern Russia to China, experts said. The Chinese were also asking Gazprom for equity in the gas fields, something that Gazprom had not granted to other customers, Mr. Henderson said. |
| Mr. Putin is in China only until Thursday, adding to the pressure for the leaders to announce some sort of deal as his three-day visit was winding down. | Mr. Putin is in China only until Thursday, adding to the pressure for the leaders to announce some sort of deal as his three-day visit was winding down. |