Russia, China sign off on 30-year gas deal

By Angelica Stephens,

After nearly a decade of discussing a gas deal, Russia and China have finally signed off on a 30-year plan that will cost the countries about $400 billion.

The creation of the gas lines, which will supply China natural gas, are expected to cost Russia $55 billion to build a line in Siberia and China around $20 billion to build a line within its borders. Russian President Vladir Putin, president of Russia, stated that both countries are content with the costs of the project, according to Bloomberg.

The deal is a huge step forward for Russia because it allows Russia to expand its gas market beyond Europe, which is essential right now due to the Ukraine tensions. Russia will be sending around 38 cubic meters of natural gas to China each year, starting in 2018.

"It's a demonstration of the fact that Russia always has and always will have other options to develop relations elsewhere," Sergei Utkin from The Russian Academy of sciences stated, according to USA Today. "The threat of isolation coming from the West will not be complete."

The plan is a big turning point for two countries that were once unsure of each other and may lend itself to more plans in the future.



Join Our Newsletter

Popular Threads