China and Russia Strengthen Economic Ties with $3.5 Billion in Trade Deals

On the second day of Russian Prime Minister Vladimir V. Putin's trip to China, the two nations reaffirmed their commitment to a massive natural gas deal, solidifying their increasingly close collaboration. The deals, signed by Putin and Chinese Prime Minister Wen Jiabao, include the supply of nearly 2.5 trillion cubic feet of gas per year from Siberia to China via two potential routes.

Key Takeaways:

• The natural gas deal, negotiated between Gazprom and China National Petroleum Corporation, calls for the supply of 2.5 trillion cubic feet of gas per year from Siberia to China.
• The agreements, totaling $3.5 billion, include a pair of $500 million bank deals, as well as other economic partnerships.
• The deal is contingent on the finalization of pricing, with Gazprom's chief, Alexei Miller, stating that the price formula will be based on Gazprom's experience in gas exports and principles of international trade.
• Russia and China have strengthened their economic cooperation, despite the global financial crisis, as highlighted by Putin in a statement to the Chinese state news agency, Xinhua.
• The agreements reflect the growing economic ties between Russia and China, with both nations seeking new sources of energy and trade.

Statistics:

• The trade deals signed between Russia and China are worth $3.5 billion.
• The natural gas deal calls for the supply of 2.5 trillion cubic feet of gas per year from Siberia to China.
• Gazprom has previously stated that Russia will supply natural gas to China via two pipelines, with the deal potentially including a price formula based on Gazprom's experience in gas exports and principles of international trade.

Sources:

• "Russia's Putin Signs Deals With China, Promising Large Gas Supply," The New York Times
• "Russia and China Sign Trade Deals Worth $3.5 Billion, Russia's Deputy Premier Says," Bloomberg
• "Putin, Wen Jiabao Agree to Step Up Economic Cooperation," Xinhua