Russia and China expect to use the ruble and yuan in payments for gas supplied using the western Altay pipeline. When it and the eastern Power of Siberia pipeline is open Beijing will become the biggest consumer of Russian gas.
READ MORE: Putin, Xi Jinping sign mega gas deal on second gas supply route
“As a sales contract is not signed, then, of course, the currency of payment has not yet been determined. However, the Chinese side and the Russian side are discussing [currency-Ed.] today and are in intricate negotiations on the possibility of paying in yuan and rubles,”Gazprom Export CEO Elena Burmistrova said Tuesday.
Gazprom says it’s not going to disclose the pricing formula for gas supplied to China via the western route because negotiations are underway, and pricing is a commercial secret, she added.
READ MORE:Russia and China seal historic $400bn gas deal
The western Altay route is expected to supply 30 billion cubic meters (bcm) of gas a year to China. A basic agreement on the supply was signed by Russian President Vladimir Putin and Chinese leader Xi Jinping on May 8.
The western route is an addition to the eastern route ratified last year, which will deliver 38 bcm of gas to China annually.
via Russia’s Gazprom and China’s CNPC to exclude dollar from gas settlements — RT Business.
phi in the sky 