The Russian “Gazprom” and the Chinese “CNBC” agreed to transfer payments for the supply of Russian gas through the “Power of Siberia” pipeline to China in Russian rubles and Chinese yuan.
Gazprom said in a statement issued today, Tuesday, that the company discussed with the Chinese “CNBC” ways to develop the “Power of Siberia 2” gas pipeline in Russia and the “Soyuz-Vostok” pipeline in Mongolia.
Gazborm CEO Alexei Miller explained that the goal of the agreements signed with the Chinese company is to simplify transactions and give impetus to the development of the economies of both countries.
“The new payment mechanism is a mutually beneficial, timely, reliable and practical solution. I believe that it will simplify the calculations, will be an excellent example for other companies, will give additional impetus to the development of our economies,” Miller said.
In addition, exports to China might increase by another 50 billion cubic meters per year, taking into account the ongoing “Power of Siberia 2” line through Mongolia called “Soyuz Vostok” which might contribute to this increase.
Spokesman for the Russian presidency, Dmitry Peskov, announced that following Europe’s rejection of Russian gas, Gazprom’s attempts and orientations will be more towards finding alternative buyers, but it will also be necessary to study how to compensate for the declining quantities.
“The less gas sold to the West, the more tends our gas sellers, Gazprom, to find alternative buyers. This is quite normal,” Peskov explained.
In a related context, the Russian government is studying a proposal saying that “Moscow might buy between three and four billion dollars worth of Chinese yuan, per month, until the end of the year, to help stop the rise of the ruble.”
And the Chinese ambassador to Russia, Zhang Hanhui, had announced earlier, that “China will continue to increase settlements in national currencies in trade with Russia.” Noting that, under Western sanctions, the two countries need to improve coordination and interaction in order to solve all associated difficulties.