Russia-China Signs $400 Billion Gas Deal Wednesday May 21,2014

People's Republic of  China(PRC) signed a landmark deal today Wednesday May 21,2014 to buy Russian natural gas worth about $400 billion, giving a boost to diplomatically isolated President Vladimir Putin and expanding Moscow's ties with Asia.

The gas deal gives Moscow an economic boost at a time when Washington and the European Union have imposed visa bans and asset freezes on dozens of Russian officials and several companies over Ukraine. It allows Russia to diversify its markets for gas, which now goes mostly to Europe.

The agreement 'opened the door for Russia to enter into Asia's gas market.

The deal was signed as visiting Russian President Vladimir Putin held talks with Chinese President Xi Jinping in Shanghai, where both sides are attending a regional security summit.

Starting 2018, China’s State-run China National Petroleum Corporation (CNPC) will receive 38 billion cubic metres of natural gas annually through a pipeline from Siberia’s gas fields
China and Russia have been negotiating the oil deal for more than a decade but had been hung up over the gas price.
 Gazprom CEO Alexei Miller (centre) and CNPC Chairman Zhou Jiping shake hands as Russian President Putin looks on during the signing ceremony in Shanghai

The agreement calls for Russian government-controlled Gazprom to supply state-owned China National Petroleum Corp with 38 billion cubic meters of gas annually, Gazprom spokesman Sergey Kupriyanov said.
That would represent about a quarter of China's current annual gas consumption of nearly 150 billion cubic meters.
The contract is worth a total of $400billion, Gazprom CEO Alexei Miller told Russian news agencies.
Russia will invest $55billion in fulfilling the contract while China will invest at least $20billion, Putin told Russian reporters in Shanghai.
Plans call for building a pipeline to link China's northeast to a line that carries gas from western Siberia to the Pacific port of Vladivosto

Russian President Valdimir Putin was in Shanghai for an Asian security conference where China's president called for a new model of Asian security cooperation based on a regional group that includes Russia and Iran and excludes the United States.