We have previously profiled the “holy grail” gas deal between Russia and China on several occasions, and noted last week how it is expected to be signed this week – pending some final price negotiations. It appears that was spot on as Reuters reports, Russian state-run Gazprom said it was still “one digit” away from finalising a 30-year gas supply deal with Beijing which is expected to crown Russian President Vladimir Putin’s visit to China next week. On the heels of Russia’s de-dollarization meetings, the coming week appears a crucial one for the history books of the US Dollar as reserve currency (or will China leverage Russia’s need to diversify from Europe and stall the deal once again?)
As we have discussed in detail, Russia has been in talks with China to supply it with 38 billion cubic metres (bcm) of gas a year for more than a decade but the deal has been postponed repeatedly over price disagreements. And as Reuters reports, last week, state China National Petroleum Corp (CNPC) said that it and Gazprom had reached an agreement to sign a contract during Putin’s visit but that the two sides had yet to iron out price differences.
Full article: Russia’s “Holy Grail” Gas Deal With China Now “Only One Digit Away” (Zero Hedge)