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2014-05-24 19:00:00

$350 FOR $400 B

$350 FOR $400 B

The price of gas in a long-awaited gas deal between China and Russia signed Wednesday is close to $350 a thousand cubic meters, Russian Energy Minister Alexander Novak said Friday in an interview with Russian state TV channel Rossiya 24.

Mr. Novak said the $350 figure was "close to the contract" but cautioned that "the price is tied to the oil product basket, which is why it may be different each time."

Russia didn't disclose the gas price when it signed its $400-billion 30-year landmark agreement with China on Wednesday, with OAO Gazprom Chief Executive Alexei Miller saying at the time that the figure was a commercial secret.

Russian President Vladimir Putin said Friday that at the agreed price and volume, the investment required for the project would pay off.

Analysts have differed in their views on what the gas price might be in the deal but most agreed that the project would require major investment from Russia that could financially strain Gazprom. Others suggested that the benefit of entering the fast-growing Chinese market outweighs the financial impact on the company.




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