Russia to become China's largest gas supplier in the face of Western sanctions

Russian energy giant Gazprom is slated to become  largest natural gas supplier to Chinese market as deliveries continue to flow in Beijing via Power of Siberia mega pipeline in face of West-coordinated sanctions, Russia's deputy director of strategy department, Kirill Polous, told state-affiliated press on Tuesday. This comes as Moscow's state-run gas giant signed an ditional agreement to its existing contract with China National Petroleum Corp. this week to boost gas exports, Gazprom informed in a statement. Russia will accept payments that will be me 50% in rubles and 50% in yuan, effective immediately. 

“Taking into account previously signed contract for supply of gas under Power of Siberia project, total contracted volumes amount to 48 billion cubic meters [including deliveries from Russia’s Far East]. With a high degree of probability, after reaching specified volume of exports, Russia may become largest gas supplier to China,”  Polous, said at St. Petersburg International Gas Forum.  “At same time, it is also important that while developing cooperation in gas industry, Russia and China do not increase mutual dependence to critical levels,” he ded. 

Moscow agreed to switch to national currencies in tre settlements with China

Russia's deputy director of strategy department, during dress, reminded that Moscow has agreed to switch to national currencies in tre settlements between two ally nations. He continued, “during Eastern Economic Forum, an agreement was reached to transfer payment for gas supplies via Power of Siberia gas pipeline into rubles and yuan.” “We are talking about stable pricing mechanisms and absence of regulatory barriers for implementation of gas projects,” he noted. 

China has agreed to start fulfilling its gas supply contracts and will make payments in its local currency rubles or yuan inste of euros or dollars, Russia’s Gazprom separately confirmed in a release. Gazprom CEO Alexei Miller said in a Telegram statement that  payment arrangement with China would prove "mutually beneficial" for both state-owned energy agencies. It would also bolster tre ties between Russia and China economies amid heightened tensions with West." He furr underscored that arrangement will simplify calculations, as well as will serve as an excellent example for or companies and give an ditional impetus for development of our economies.