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      Russia formally approves gas deal with China

      2014-10-11 08:34 Xinhua Web Editor: Qin Dexing
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      Russia has formally approved the agreement with China on natural gas supplies via the China-Russia East-Route Natural Gas Pipeline, the government said Friday.

      "The approval of the deal signed on May 21, 2014 between (Russian gas giant) Gazprom and China National Petroleum Corp (CNPC) is a condition for the agreement to come into force," said the statement released on the government website.

      China and Russia Purchase and Sales Contract on East-Route Gas Project and a memorandum were signed in May. The 30-year contract will see the East-Route Pipeline start providing China with 38 billion cubic meters of natural gas annually from 2018.

      According to an order signed by Prime Minister Dmitry Medvedev, the two sides will also encourage energy payments in each other's national currencies.

      Medvedev said Thursday that the Russian government will provide full support for the construction of the China-Russia Natural Gas Pipeline.

      "Relevant companies will be provided with full support in the development, construction and operation of the gas transportation infrastructure, which is necessary for supplying Russian gas to our Chinese partners," Medvedev said.

      The Russian part of the joint venture pipeline, officially dubbed "Power of Siberia," will be built by Gazprom with a total investment of 55 billion U.S. dollars.

      Construction on the Russia section started in the eastern Siberian city of Yakutsk on Sept. 1. Negotiations on details for a proposed a west route are underway.

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