After nearly a decade of discussing a gas deal, Russia and China have finally signed off on a 30 year plan deal 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 in their country. Vladir Puttin, 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.
According to USA Today , Sergei Utkin from The Russian Academy of sciences stated, "It's a demonstration of the fact that Russia always has and always will have other options to develop relations elsewhere. The threat of isolation coming from the West will not be complete".
The plan is a big turning point for two countries who once were unsure of each other and may lend itself to more plans in the future.