Title: Natural gas in Russia - Wikipedia
Headings: Natural gas in Russia
Natural gas in Russia
Contents
Disputes with Ukraine
Agreement with China
Subsidies
Automotive use
See also
References

Content: The Kovykta and Chayanda gas fields which will supply the majority of the natural gas are currently largely undeveloped. Tentative agreements had been reached several times since 2005, but each time final negotiations broke down over price. The agreed upon price was not disclosed, but those familiar with the situation said getting a lower price than European buyers was a key demand of China in the negotiations. However, Russian representatives said the price would fluctuate based on the market price of oil, making the deal closer to what Russia had wanted than to what China had been asking for. The total value of the deal was estimated at US$400 billion. It will increase Russian exports to countries not part of the former Soviet Union by 25% and make China the country's 2nd largest customer, after Germany. The agreement was reached as Chinese and Russian leaders met to discuss greater cooperation in Asia without involvement of Western powers. It was seen as an important political and economic victory for Russian President Vladimir Putin. It allows Russia to diversify its natural business outside of Europe and weakens the force of economic sanctions placed by the West in the aftermath of the 2014 Crimean crisis. More generally, it allows Russia to reduce its isolation due to the crisis in Ukraine.