[Economics] Russia, Gazprom & China seal historic $400bn gas deal

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After 10 years of negotiations, Russia's Gazprom and China's CNPC have finally signed a historic gas deal which will provide the world's fastest growing economy with the natural gas it needs to keep pace for the next 30 years.

Infrastructure investment from both sides will be more than $70 billion and will be the world's largest construction project, with Russia providing $55 billion up front and China $22 billion for pipelines on their respective territories.

The deal comes as a part of Russia's larger-scale pivot to Asia and especially China as Western economies threaten sanctions over turmoil in Ukraine. Sanctions by the US and the EU have been mostly limited to visa bans and asset freezes on some of Russia's top officials, while so far only threatening a so-called third round of real economic sanctions against Russian hydrocarbon businesses.




Russia has more than the estimated 3 trillion cubic metres in natural gas reserves in its gasfields, enough to last for 50 years, Russia's President has said commenting on the 30-year $400 billion gas deal with China.:
"This deal is for 30 years, while I think there's enough supply for 50 years. They are underestimated. Extractable reserves at the two deposits that we would introduce – Kovykta and Chayanda – are 1.5 trillion cubic metres of natural gas reserves each. Which means in total there's 3 trillion. In reality, I repeat, there's more," said President Vladimir Putin talking to the representatives of global businesses at the 18th International Economic Forum in St Petersburg.

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Read more at RT.